10-Q/A

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q/A

(Amendment No. 1)

☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended September 30, 2021

☐
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from                  to                 

Commission File No. 001-39378

SportsTek Acquisition Corp.

(Exact name of registrant as specified in its charter)

Delaware	85-4265519
(State or other jurisdiction of incorporation or organization)	(I.R.S. Employer Identification No.)

2200 S. Utica Place, Suite 450

Tulsa, Oklahoma 74114

(Address of Principal Executive Offices, including zip code)

(918) 957-1086

(Registrant’s telephone number, including area code)

Securities registered pursuant to Section 12(b) of the Act:

Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Units, each consisting of one Class A common stock, par value $0.0001 per share, and one-half of one redeemable warrant	SPTKU	The Nasdaq Stock Market LLC
Class A common stock included as part of the units	SPTK	The Nasdaq Stock Market LLC
Redeemable warrants, included as part of the units, each whole warrant exercisable for one share of Class A common stock at an exercise price of $11.50 per share	SPTKW	The Nasdaq Stock Market LLC

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.   Yes  ☐  No  ☒   

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).    Yes    ☒  No  ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer	☐	Accelerated filer	☐
Non-accelerated filer	☒	Smaller reporting company	☒
		Emerging growth company	☒

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.  ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act):    Yes  ☒    No  ☐

As of March 4, 2022, there were 17,250,000 Shares of Class A common stock (which are the shares of Class A common stock underlying the units sold in the registrant’s initial public offering) and 4,312,500 shares of Class B common stock of the registrant issued and outstanding.

SPORTSTEK ACQUISITION CORP.

FORM 10-Q FOR THE QUARTER ENDED SEPTEMBER 30, 2021

TABLE OF CONTENTS

			Page
PART I - FINANCIAL INFORMATION			2
	ITEM 1. CONDENSED FINANCIAL STATEMENTS		2
		CONDENSED BALANCE SHEETS	2
		UNAUDITED CONDENSED STATEMENTS OF OPERATIONS	3
		UNAUDITED CONDENSED STATEMENTS OF CHANGES IN STOCKHOLDERS’ EQUITY (DEFICIT) FOR THE THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2021	4
		UNAUDITED CONDENSED STATEMENT OF CASH FLOWS FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2021	5
		NOTES TO UNAUDITED CONDENSED FINANCIAL STATEMENTS	6
		Note 1 — Organization and Business Operations	6
		Note 2 — Revision of Previously Issued Financial Statements	8
		Note 3 — Significant Accounting Policies	10
		Note 4 — Initial Public Offering	14
		Note 5 — Private Placement	16
		Note 6 — Related Party Transactions	16
		Note 7 — Commitments and Contingencies	17
		Note 8 — Stockholders’ Equity	17
		Note 9 — Fair Value Measurements	18
		Note 10 — Subsequent Events	19
	ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS		20
	ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK		23
	ITEM 4. CONTROLS AND PROCEDURES		23
PART II - OTHER INFORMATION			24
	ITEM 1. LEGAL PROCEEDINGS		24
	ITEM 1. A. RISK FACTORS		24
	ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS		24
	ITEM 3. DEFAULTS UPON SENIOR SECURITIES		24
	ITEM 4. MINE SAFETY DISCLOSURES		24
	ITEM 5. OTHER INFORMATION		24
	ITEM 6. EXHIBITS		25
SIGNATURES			26

EXPLANATORY NOTE

References throughout this Amendment No. 1 to the Quarterly Report on Form 10-Q to “we,” “us,” the “Company” or “our company” are to SportsTek Acquisition Corp, unless the context otherwise indicates.

This Amendment No. 1 (“Amendment No. 1”) to the Quarterly Report on Form 10-Q/A amends the Quarterly Report on Form 10-Q of SportsTek Acquisition Corp. as of and for the period ended September 30, 2021, as filed with the Securities and Exchange Commission (“SEC”) on November 12, 2021. On November 12, 2021, SportsTek Acquisition Corp. (the “Company”) filed its Form 10-Q for the quarterly period ending September 30, 2021 (the “Q3 Form 10-Q”), which included a Note 2, Revision of Previously Issued Financial Statements, (“Note 2”) that describes a revision to the Company’s classification of its Class A common stock subject to redemption issued as part of the units sold in the Company’s initial public offering (“IPO”) on February 19, 2021. As described in Note 2, upon its IPO, the Company classified a portion of the Class A common stock subject to redemption as permanent equity to maintain net tangible assets greater than $5,000,000 on the basis that the Company will consummate its initial business combination only if the Company has net tangible assets of at least $5,000,001. Previously, the Company did not consider redeemable shares classified as temporary equity as part of net tangible assets. Effective with these financial statements, the Company revised this interpretation to include temporary equity in net tangible assets. The Company’s management re-evaluated the conclusion and determined that the Class A common stock subject to redemption included certain provisions that require classification of such Class A common stock as temporary equity. As a result, management corrected the error by reclassifying all Class A common stock subject to redemption as temporary equity. This resulted in a revision to the initial carrying value of the Class A common stock subject to possible redemption with the offset recorded to additional paid-in capital (to the extent available), accumulated deficit and Class A common stock subject to redemption.

 In connection with the change in presentation for the Class A common stock subject to redemption, the Company also revised its earnings per share calculation to allocate net income (loss) pro rata to Class A and Class B common stock. This presentation contemplates a Business Combination as the most likely outcome, in which case, both classes of common shares share pro rata in the income (loss) of the Company.

Previously, the Company determined the changes were not qualitatively material to the Company’s previously issued financial statements and did not restate its financial statements. Instead, the Company revised its previously issued financial statements in Note 2 to its Q3 Form 10-Q.

Following the filing of the Q3 Form 10-Q, management re-evaluated its assessment that the revisions were not material. Although the qualitative factors that management assessed tended to support a conclusion that the misstatements were not material, management determined that these factors were not strong enough to overcome the significant quantitative errors in the financial statements and that the qualitative and quantitative factors support a conclusion that the misstatements are material. As such, upon further consideration of the change, management determined the change in the Company’s classification of the Class A common stock subject to redemption and change to the Company’s presentation of earnings per share is material quantitatively and that the Company should restate its previously issued financial statements.

Therefore, the Company’s management and the board of directors  concluded that the Company’s previously issued (i) audited balance sheet as of February 19, 2021 (the “Post IPO Balance Sheet”), (ii) unaudited interim financial statements included in the Company’s Quarterly Report on Form 10-Q for the quarterly period ended March 31, 2021, filed with the SEC on May 28, 2021, and (iii) unaudited interim financial statements included in the Company’s Quarterly Report on Form 10-Q for the quarterly period ended June 30, 2021, filed with the SEC on August 13, 2021, should be restated to report all Class A common stock as temporary equity and should no longer be relied upon. As such, the Company will restate its interim unaudited financial statements for the quarterly periods ended March 31, 2021 and June 30, 2021 in this Quarterly Report on Form 10-Q/A.

The restatement does not have any impact on the Company’s cash position and cash held in the trust account established in connection with the IPO.  After re-evaluation, the Company’s management has concluded that in light of the errors described above, a material weakness existed in the Company’s internal control over financial reporting during the affected periods and that the Company’s disclosure controls and procedures were not effective. The Company’s remediation plan with respect to such material weakness is described in more detail below in this Quarterly Report on Form 10-Q/A.

1

PART I - FINANCIAL INFORMATION

ITEM 1.  CONDENSED FINANCIAL STATEMENTS

SPORTSTEK ACQUISITION CORP.
CONDENSED BALANCE SHEETS

	September 30, 2021			December 31, 2020
	(unaudited)
Assets:
Current Assets:
Cash	$	674,319		$	153,938
Prepaid expenses		502,069			—
Total current assets		1,176,388			153,938
Deferred offering costs associated with initial public offering		—			408,725
Cash and investments held in Trust Account		172,517,299			—
Total Assets	$	173,693,687		$	562,663
Liabilities and Stockholders’ Equity (Deficit)
Current liabilities:
Accrued offering costs and expenses	$	796,655		$	362,230
Due to related party		14,957			—
Promissory note – related party		—			176,000
Total current liabilities		811,612			538,230
Deferred underwriting fee		6,037,500			—
Warrant liability		14,087,350			—
Total liabilities		20,936,462			538,230
Commitments
Class A Common Stock subject to possible redemption, $0.0001 par value; 17,250,000 and no shares issued and outstanding at redemption value of $10.00 per share at September 30, 2021 and December 31, 2020, respectively		172,500,000			—
Stockholders’ Equity (Deficit):
Preferred stock, $0.0001 par value; 1,000,000 shares authorized; none issued or outstanding		—			—
Class A common stock, $0.0001 par value; 200,000,000 shares authorized; no shares issued or outstanding (excluding 17,250,000 and no shares subject to possible redemption) at September 30, 2021 and December 31, 2020, respectively		—			—
Class B common stock, $0.0001 par value; 20,000,000 shares authorized; 4,312,500 shares issued and outstanding at September 30, 2021 and December 31, 2020		431			431
Additional paid-in capital		—			24,569
Accumulated deficit		(19,743,206	)		(567	)
Total stockholders’ equity (deficit)		(19,742,775	)		24,433
Total Liabilities and Stockholders’ Equity (Deficit)	$	173,693,687		$	562,663

The accompanying notes are an integral part of these unaudited condensed financial statements.

2

SPORTSTEK ACQUISITION CORP.
UNAUDITED CONDENSED STATEMENTS OF OPERATIONS

	For the Three Months Ended September 30, 2021			For the Nine Months Ended September 30, 2021
Formation and operating costs	$	252,818		$	1,321,588
Loss from Operations		(252,818	)		(1,321,588	)
Other income (expense):
Interest earned on investments held in Trust Account		5,750			17,299
Offering costs allocated to warrants		—			(606,375	)
Change in fair value of warrant liability		(2,112,181	)		1,992,805
Total other income (expense), net		(2,106,431	)		1,403,729
Net income (loss)		(2,359,249	)	$	82,141
Weighted average shares outstanding of Class A common stock		17,250,000			14,090,659
Basic and diluted net income (loss) per share, Class A common stock		(0.11	)	$	0.00
Basic weighted average shares outstanding of Class B common stock		4,312,500			4,209,478
Basic and diluted net income (loss) per share, Class B common stock		(0.11	)	$	0.00

The accompanying notes are an integral part of these unaudited condensed financial statements.

3

SPORTSTEK ACQUISITION CORP.

UNAUDITED CONDENSED STATEMENTS OF CHANGES IN STOCKHOLDERS’ EQUITY (DEFICIT)

FOR THE THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2021

	Class A				Class B				Additional						Total
	Common stock				Common stock				Paid-in			Accumulated			Stockholders’
	Stock		Amount		Stock		Amount		Capital			Deficit			Equity (Deficit)
Balance as of January 1, 2021		—	$	—		4,312,500	$	431	$	24,569		$	(567	)	$	24,433
Accretion of Class A common stock subject to possible redemption		—		—		—		—		(24,569	)		(19,824,780	)		(19,849,349	)
Net loss		—		—		—		—		—			(2,898,231	)		(2,898,231	)
Balance as of March 31, 2021		—	$	—		4,312,500	$	431	$	—		$	(22,723,578	)	$	(22,723,147	)
Net income		—		—		—		—		—			5,339,621			5,339,621
Balance as of June 30, 2021		—	$	—		4,312,500	$	431	$	—		$	(17,383,957	)	$	(17,383,526	)
Net loss		—		—		—		—		—			(2,359,249	)		(2,359,249	)
Balance as of September 30, 2021		—	$	—		4,312,500	$	431	$	—		$	(19,743,206	)	$	(19,742,775	)

The accompanying notes are an integral part of these unaudited condensed financial statements.

4

SPORTSTEK ACQUISITION CORP.

UNAUDITED CONDENSED STATEMENT OF CASH FLOWS

FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2021

Cash flows from operating activities:
Net income	$	82,141
Adjustments to reconcile net income to net cash used in operating activities:
Interest earned on investments held in Trust Account		(17,299	)
Offering costs allocated to warrants		606,375
Change in fair value of warrant liability		(1,992,805	)
Changes in operating assets and liabilities:
Prepaid expenses		(502,069	)
Due to related party		14,957
Accrued offering costs and expenses		796,655
Net cash used in operating activities		(1,012,045	)
Cash Flows from Investing Activities:
Investment of cash in Trust Account		(172,500,000	)
Net cash used in investing activities		(172,500,000	)
Cash Flows from Financing Activities:
Proceeds from sale of Units, net of underwriting discount		169,050,000
Proceeds from issuance of Private Placement Warrants		5,950,000
Repayment of promissory note – related party		(176,000	)
Payment of offering costs		(791,574	)
Net cash provided by financing activities		174,032,426
Net change in cash		520,381
Cash, beginning of period		153,938
Cash, end of the period	$	674,319
Supplemental disclosure of cash flow information:
Deferred underwriters’ discount payable charged to additional paid-in capital	$	6,037,500

The accompanying notes are an integral part of these unaudited condensed financial statements.

5

SPORTSTEK ACQUISITION CORP.
NOTES TO UNAUDITED CONDENSED FINANCIAL STATEMENTS

Note 1 — Organization and Business Operations

SportsTek Acquisition Corp. (the “Company”) is a blank check company incorporated as a Delaware corporation on December 7, 2020. The Company was formed for the purpose of effecting a merger, capital stock exchange, asset acquisition, stock purchase, reorganization or similar business combination with one or more businesses (“Business Combination”).

As of September 30, 2021, the Company had not commenced any operations. All activity through September 30, 2021 relates to the Company’s formation and the Initial Public Offering (“IPO”) which is described below, and identifying a target company for a Business Combination. The Company will not generate any operating revenues until after the completion of a Business Combination, at the earliest. The Company generates non-operating income in the form of interest income from the proceeds derived from the IPO.

The registration statement for the Company’s IPO was declared effective by the U.S. Securities and Exchange Commission (the “SEC”) on February 16, 2021 (the “Effective Date”). On February 19, 2021, the Company consummated the IPO of 17,250,000 units ((the “Units” and, with respect to the shares of Class A common stock included in the Units sold, the “Public Shares”), which included the full exercise by the underwriters of the over-allotment option to purchase an additional 2,250,000 Units, at $10.00 per Unit, generating gross proceeds of $172,500,000, which is discussed in Note 5. Each Unit consists of one share of common stock, and one-half of one redeemable warrant to purchase one share of Class A common stock at a price of $11.50 per whole share.

Simultaneously with the closing of the IPO, the Company consummated the sale of 5,950,000 Private Placement Warrants (the “Private Placement Warrants”), at a price of $1.00 per Private Placement Warrant, in a private placement to JTJT Partners LLC (the “Sponsor”) and certain of the Company’s directors and advisors, generating gross proceeds of $5,950,000, which is discussed in Note 6.

Transaction costs of the IPO amounted to $10,325,569 consisting of $3,450,000 of underwriting fee, $6,037,500 of deferred underwriting fee, and $838,069 of other offering costs.

Following the closing of the IPO on February 19, 2021, $172,500,000 ($10.00 per Unit) from the net offering proceeds of the sale of the Units in the IPO and the sale of the Private Placement Warrants was placed in a trust account (the “Trust Account”) and invested in U.S. government treasury bills with a maturity of 185 days or less or in money market funds investing solely in U.S. Treasuries, as determined by the Company, until the earlier of: (i) the completion of a Business Combination; (ii) the redemption of any Public Shares in connection with a stockholder vote to approve an amendment to the Company’s Certificate of Incorporation (a) to modify the substance or timing of the Company’s obligation to allow redemptions in connection with a Business Combination or to redeem 100% of the Public Shares if the Company has not consummated a Business Combination within 24 months from the closing of the IPO or (b) with respect to any other provision relating to stockholders’ rights or pre-initial business combination activity; and (iii) the redemption of any Public Shares if the Company has not consummated a Business Combination within 24 months from the closing of the IPO, subject to applicable law.

The Company will provide the holders of the outstanding Public Shares (the “Public Stockholders”) with the opportunity to redeem all or a portion of their Public Shares upon the completion of a Business Combination either (i) in connection with a stockholder meeting called to approve the Business Combination or (ii) by means of a tender offer. The decision as to whether the Company will seek stockholder approval of a Business Combination or conduct a tender offer will be made by the Company. The Public Stockholders will be entitled to redeem their Public Shares for a pro rata portion of the amount then in the Trust Account (initially anticipated to be $10.00 per Public Share). There will be no redemption rights upon the completion of a Business Combination with respect to the Company’s warrants.

The Company will have only 24 months from February 19, 2021, the closing of the IPO, to complete an initial Business Combination (the “Combination Period”). However, if the Company doesn’t complete a Business Combination within the Combination Period, the Company will redeem 100% of the outstanding Public Shares for a pro rata portion of the funds held in the Trust Account, equal to the aggregate amount then on deposit in the Trust Account including interest earned on the funds held in the Trust Account and not previously released to the Company to pay its franchise and income taxes, divided by the number of then outstanding Public Shares, subject to applicable law and as further described in registration statement, and then seek to dissolve and liquidate.

6

The Company’s Sponsor, officers and directors have entered into a letter agreement with the Company, pursuant to which they have agreed to waive (i) their redemption rights with respect to any Founder Shares and any Public Shares held by them in connection with the completion of a Business Combination and (ii) their redemption rights with respect to any Founder Shares and Public Shares held by them in connection with a stockholder vote to approve an amendment to the Company’s Certificate of Incorporation (a) to modify the substance or timing of the Company’s obligation to allow redemptions in connection with a Business Combination or to redeem 100% of the Public Shares if the Company has not consummated a Business Combination within 24 months from the closing of the IPO or (b) with respect to any other provision relating to stockholders’ rights or pre-initial business combination activity.

In order to protect the amounts held in the Trust Account, the Sponsor has agreed to be liable to the Company if and to the extent any claims by a third party (other than our independent public registered accounting firm) for services rendered or products sold to the Company, or a prospective target business with which the Company has discussed entering into a transaction agreement, reduce the amount of funds in the Trust Account to below (i) $10.00 per Public Share or (ii) such lesser amount per Public Share held in the Trust Account as of the date of the liquidation of the Trust Account due to reductions in the value of the trust assets, in each case net of the amount of interest which may be withdrawn to pay taxes, except as to any claims by a third party who executed a waiver of any and all rights to seek access to the Trust Account and except as to any claims under the Company’s indemnity of the underwriter of the IPO against certain liabilities, including liabilities under the Securities Act of 1933, as amended (the “Securities Act”). Moreover, in the event that an executed waiver is deemed to be unenforceable against a third party, the Sponsor will not be responsible to the extent of any liability for such third-party claims. The Company will seek to reduce the possibility that the Sponsor will have to indemnify the Trust Account due to claims of creditors by endeavoring to have all vendors, service providers (except for the Company’s independent registered accounting firm), prospective target businesses and other entities with which the Company does business, execute agreements with the Company waiving any right, title, interest or claim of any kind in or to monies held in the Trust Account. However, the Company has not asked its Sponsor to reserve for such indemnification obligations, nor has the Company independently verified whether its Sponsor has sufficient funds to satisfy its indemnity obligations and the Company believes that the Company’s Sponsor’s only assets are securities of the Company. Therefore, the Company cannot assure that its Sponsor would be able to satisfy those obligations.

Liquidity and Capital Resources

As of September 30, 2021, the Company had approximately $0.7 million in its operating bank account, and working capital of approximately $0.4 million.

The Company’s liquidity needs up to February 19, 2021 had been satisfied through a capital contribution from the Sponsor of $25,000 (see Note 6) for the Founder Shares and the loan under an unsecured promissory note from the Sponsor of $176,000 (see Note 6). The promissory note from the Sponsor was paid in full as of February 22, 2021. In addition, in order to finance transaction costs in connection with a Business Combination, the Company’s Sponsor or an affiliate of the Sponsor or certain of the Company’s officers and directors may, but are not obligated to, provide the Company Working Capital Loans (see Note 6). As of September 30, 2021, there were no amounts outstanding under any Working Capital Loans.

Based on the foregoing, management believes that the Company will have sufficient working capital and borrowing capacity to meet its needs through the earlier of the consummation of a Business Combination or one year from this filing. Over this time period, the Company will be using these funds for paying existing accounts payable, identifying and evaluating prospective initial Business Combination candidates, performing due diligence on prospective target businesses, paying for travel expenditures, selecting the target business to merge with or acquire, and structuring, negotiating and consummating the Business Combination.

Risks and Uncertainties

Management is continuing to evaluate the impact of the COVID-19 pandemic and has concluded that while it is reasonably possible that it could have a negative effect on the Company’s financial position, results of its operations and/or search for a target company, the specific impact is not readily determinable as of the date of these financial statements. The financial statements do not include any adjustments that might result from the outcome of this uncertainty.

7

Note 2 — Restatement of Previously Issued Financial Statements

In the Company’s previously issued financial statements, a portion of the public shares were classified as permanent equity to maintain stockholders’ equity greater than $5,000,000 on the basis that the Company will consummate its initial business combination only if the Company has net tangible assets of at least $5,000,001. Thus, the Company can only complete a merger and continue to exist as a public company if there is sufficient Public Shares that do not redeem at the merger and so it was deemed appropriate to classify the portion of its public shares required to keep its stockholders’ equity above the $5,000,000 threshold as “shares not subject to redemption.”

Management re-evaluated the Company’s application of ASC 480-10-99 to its accounting classification of public shares. Upon re-evaluation, management determined that the public shares include certain provisions that require classification of the public shares as temporary equity regardless of the minimum net tangible assets required by the Company to complete its initial business combination.

In connection with the change in presentation for the Class A common stock subject to possible redemption, the Company also revised its earnings per share calculation to allocate income and losses pro rata to Class A and Class B common stock. This presentation contemplates a Business Combination as the most likely outcome, in which case, both classes of stock share pro rata in the income and losses of the Company.

In accordance with SEC Staff Accounting Bulletin No. 99, “Materiality,” and SEC Staff Accounting Bulletin No. 108, “Considering the Effects of Prior Year Misstatements when Quantifying Misstatements in Current Year Financial Statements;” the Company evaluated the changes and has determined that the related impacts were quantitatively material to previously presented financial statements. Therefore, the Company, in consultation with its Board of Directors, concluded that its previously issued financial statements impacted should be restated to report all public shares as temporary equity. As a result, the Company will restate its previously filed financial statements to classify all of its Class A common stock as temporary equity and to recognize accretion from the initial book value to redemption value at the time of its IPO and in accordance with ASC 480. The Company will file a Current Report on Form 8-K reporting under Item 4.02 that the impacted periods should no longer be relied upon and it restates all affected periods with an appropriate explanation of the amount, reason and impact. Under this approach, the previously issued IPO Balance Sheet and Form 10-Qs will not be amended. The Company is reporting the restatement of its interim financial statements for the quarters ended March 31, 2021 and June 30, 2021 in this Quarterly Report.

8

Impact of the Restatement

The impact to the financial statements as of June 30, 2021 and March 31, 2021 is presented below:

	As Reported			Adjustment			As Restated
Balance Sheet as of March 31, 2021 (per form 10Q filed on May 28, 2021)
Class A Common stock subject to possible redemption ($)	$	144,776,850		$	27,723,150		$	172,500,000
Class A common stock, $0.0001 par value		277			(277	)		—
Additional Paid in Capital		7,898,093			(7,898,093	)		—
Accumulated Deficit		(2,898,798	)		(19,824,780	)		(22,723,578	)
Total Stockholders’ Equity (Deficit)		5,000,003			(27,723,150	)		(22,723,147	)
Class A common stock subject to redemption		14,477,685			2,772,315			17,250,000
Statement of Operations for the three months ended March 31, 2021 (per form 10Q filed on May 28, 2021)
Weighted average shares outstanding, Class A common stock basic and diluted		17,250,000			(9,583,333	)		7,666,667
Weighted average shares outstanding, Class B common stock basic and diluted		4,006,250			6,250			4,000,000
EPS – Class A common stock	$	—		$	(0.25	)	$	(0.25	)
EPS – Class B common stock	$	(0.72	)	$	0.47		$	(0.25	)
	As Reported			Adjustment			As Restated
Condensed Statement of Cash Flows for the three months ended March 31, 2021
Supplemental disclosure of cash flow information:
Initial value of Class A common stock subject to possible redemption	$	143,583,030		$	143,583,030		$	—
Change in value of Class A common stock subject to possible redemption	$	(806,180	)	$	806,180		$	—
	As Reported			Adjustment			As Restated
Balance Sheet as of June 30, 2021 (per form 10Q filed on August 13, 2021)
Class A common stock subject to possible redemption ($)	$	150,116,470		$	22,383,530		$	172,500,000
Class A common stock, $0.0001 par value		224			(224	)		—
Additional Paid in Capital		2,558,526			(2,558,526	)		—
Retained Earnings (Accumulated Deficit)		2,440,823			(19,824,780	)		(17,383,957	)
Total Stockholders’ Equity (Deficit)		5,000,004			(22,383,530	)		(17,383,526	)
Class A common stock subject to redemption		15,011,647			2,238,353			17,250,000
Statement of Operations for the six months ended June 30, 2021 (per form 10Q filed on August 13, 2021)
Weighted average shares outstanding, Class A common stock basic and diluted		17,250,000			4,765,193			12,484,807
Weighted average shares outstanding, Class B common stock basic		4,160,221			3,108			4,157,113
Weighted average shares outstanding, Class B common stock diluted		4,312,500			—			4,312,500
EPS – Class A common stock	$	—		$	0.15		$	0.15
Basic EPS – Class B common stock	$	0.59		$	(0.44	)	$	0.15
Diluted EPS – Class B common stock	$	0.57		$	(0.42	)	$	0.15
Statement of Operations for the three months ended June 30, 2021 (per form 10Q filed on August 13, 2021)
Weighted average shares outstanding, Class A common stock basic and diluted		17,250,000			—			17,250,000
Weighted average shares outstanding, Class B common stock basic and diluted		4,312,500			—			4,312,500
EPS – Class A common stock	$	—		$	0.25		$	0.25
EPS – Class B common stock	$	1.24		$	(0.99	)	$	0.25
	As Reported			Adjustment			As Restated
Condensed Statement of Cash Flows for the six months ended June 30, 2021
Supplemental disclosure of cash flow information:
Initial value of Class A common stock subject to possible redemption	$	145,583,030		$	145,583,080		$	—
Change in value of Class A common stock subject to possible redemption	$	4,533,441		$	(4,533,441	)	$	—

9

Note 3 — Significant Accounting Policies

Basis of Presentation

The accompanying unaudited condensed financial statements are presented in U.S. dollars in conformity with accounting principles generally accepted in the United States of America (“GAAP”) for financial information and pursuant to the rules and regulations of the SEC. Accordingly, they do not include all of the information and footnotes required by GAAP. In the opinion of management, the unaudited condensed financial statements reflect all adjustments, which include only normal recurring adjustments necessary for the fair statement of the balances and results for the periods presented. The interim results for the three months and nine months ended September 30, 2021 are not necessarily indicative of the results to be expected for the year ending December 31, 2021 or for any future interim periods.

The accompanying unaudited condensed financial statements should be read in conjunction with the audited financial statements and notes thereto included in the Form 10-K filed by the Company with the SEC on March 30, 2021.

Emerging Growth Company Status

The Company is an “emerging growth company,” as defined in Section 2(a) of the Securities Act, as modified by the Jumpstart our Business Startups Act of 2012, (the “JOBS Act”), and it may take advantage of certain exemptions from various reporting requirements that are applicable to other public companies that are not emerging growth companies including, but not limited to, not being required to comply with the auditor attestation requirements of Section 404 of the Sarbanes-Oxley Act, reduced disclosure obligations regarding executive compensation in its periodic reports and proxy statements, and exemptions from the requirements of holding a nonbinding advisory vote on executive compensation and stockholder approval of any golden parachute payments not previously approved.

Further, Section 102(b)(1) of the JOBS Act exempts emerging growth companies from being required to comply with new or revised financial accounting standards until private companies (that is, those that have not had a Securities Act registration statement declared effective or do not have a class of securities registered under the Exchange Act) are required to comply with the new or revised financial accounting standards. The JOBS Act provides that a company can elect to opt out of the extended transition period and comply with the requirements that apply to non-emerging growth companies but any such election to opt out is irrevocable. The Company has elected not to opt out of such extended transition period which means that when a standard is issued or revised and it has different application dates for public or private companies, the Company, as an emerging growth company, can adopt the new or revised standard at the time private companies adopt the new or revised standard. This may make comparison of the Company’s financial statements with another public company which is neither an emerging growth company nor an emerging growth company which has opted out of using the extended transition period difficult or impossible because of the potential differences in accounting standards used.

Use of Estimates

The preparation of financial statements in conformity with US GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of expenses during the reporting period.

Making estimates requires management to exercise significant judgment.  It is at least reasonably possible that the estimate of the effect of a condition, situation or set of circumstances that existed at the date of the financial statements, which management considered in formulating its estimate, could change in the near term due to one or more future confirming events. Accordingly, actual results could differ from those estimates.

10

Cash and Cash Equivalents

The Company considers all short-term investments with an original maturity of three months or less when purchased to be cash equivalents. The Company did not have any cash equivalents as of September 30, 2021 and December 31, 2020.

Marketable Securities Held in Trust Account

At September 30, 2021, the assets held in the Trust Account were held in U.S. Treasury Bills with a maturity of 185 days or less and in money market funds which invest in U.S. Treasury securities. During the nine months ended September 30, 2021, the Company did not withdraw any of the interest income from the Trust Account to pay its tax obligations.

The Company classifies its United States Treasury securities as held-to-maturity in accordance with FASB ASC Topic 320 “Investments - Debt and Equity Securities.” Held-to-maturity securities are those securities which the Company has the ability and intent to hold until maturity. Held-to-maturity treasury securities are recorded at amortized cost and adjusted for the amortization or accretion of premiums or discounts.

A decline in the market value of held-to-maturity securities below cost that is deemed to be other than temporary, results in an impairment that reduces the carrying costs to such securities’ fair value. The impairment is charged to earnings and a new cost basis for the security is established. To determine whether an impairment is other than temporary, the Company considers whether it has the ability and intent to hold the investment until a market price recovery and considers whether evidence indicating the cost of the investment is recoverable outweighs evidence to the contrary. Evidence considered in this assessment includes the reasons for the impairment, the severity and the duration of the impairment, changes in value subsequent to year-end, forecasted performance of the investee, and the general market condition in the geographic area or industry in which the investee operates.

Premiums and discounts are amortized or accreted over the life of the related held-to-maturity security as an adjustment to yield using the effective-interest method. Such amortization and accretion are included in the “interest income” line item in the statements of operations. Interest income is recognized when earned.

Concentration of Credit Risk

Financial instruments that potentially subject the Company to concentrations of credit risk consist of cash accounts in a financial institution, which, at times, may exceed the federal depository insurance coverage of $250,000. The Company has not experienced losses on these accounts and management believes the Company is not exposed to significant risks on such accounts.

Warrant Liability

The Company evaluated the Public Warrants and Private Placement Warrants (collectively, “Warrants”, which are discussed in Note 5, Note 6 and Note 10) in accordance with ASC 815-40, “Derivatives and Hedging — Contracts in Entity’s Own Equity”, and concluded that a provision in the Warrant Agreement related to certain tender or exchange offers precludes the Warrants from being accounted for as components of equity. As the Warrants meet the definition of a derivative as contemplated in ASC 815, the Warrants are recorded as derivative liabilities on the Condensed Balance Sheet and measured at fair value at inception (on the date of the IPO) and at each reporting date in accordance with ASC 820, “Fair Value Measurement”, with changes in fair value recognized in the Condensed Statement of Operations in the period of change.

Offering Costs Associated with the Initial Public Offering

The Company complies with the requirements of the ASC 340-10-S99-1. Offering costs consisted of legal, accounting, underwriting fees and other costs incurred through the Initial Public Offering that were directly related to the Initial Public Offering. Offering costs are allocated to the separable financial instruments issued in the Initial Public Offering based on a relative fair value basis, compared to total proceeds received.  Offering costs associated with warrant liabilities are expensed as incurred and are presented as non-operating expenses in the statement of operations. Offering costs associated with the Class A common stock were charged to temporary equity upon the completion of the Initial Public Offering.

11

Common Stock Subject to Possible Redemption

All of the 17,250,000 Class A Common Stock sold as part of the Units in the Public Offering contain a redemption feature which allows for the redemption of such public shares in connection with the Company’s liquidation, if there is a stockholder vote or tender offer in connection with the Business Combination and in connection with certain amendments to the Company’s second amended and restated certificate of incorporation. In accordance with SEC and its staff’s guidance on redeemable equity instruments, which has been codified in ASC 480-10-S99, redemption provisions not solely within the control of the Company require common stock subject to redemption to be classified outside of permanent equity. Ordinary liquidation events, which involve the redemption and liquidation of all of the entity’s equity instruments, are excluded from the provisions of ASC 480. Accordingly, at September 30, 2021 and December 31, 2020, all shares of Class A common stock subject to possible redemption is presented as temporary equity, outside of the stockholders’ equity section of the Company’s condensed balance sheet.

The Class A common stock subject to possible redemption reflected on the balance sheet as of September 30, 2021 is reconciled in the following table:

Gross Proceeds	$	172,500,000
Less:
Proceeds allocated to public warrants		(10,130,155	)
Class A common stock issuance costs		(9,719,194	)
Plus:
Accretion of carrying value to redemption value		19,849,349
Class A common stock subject to possible redemption	$	172,500,000

Income Taxes

The Company accounts for income taxes under ASC 740 Income Taxes (“ASC 740”). ASC 740 requires the recognition of deferred tax assets and liabilities for both the expected impact of differences between the financial statement and tax basis of assets and liabilities and for the expected future tax benefit to be derived from tax loss and tax credit carry forwards. ASC 740 additionally requires a valuation allowance to be established when it is more likely than not that all or a portion of deferred tax assets will not be realized. The deferred tax assets were deemed to be de minimis as of September 30, 2021 and December 31, 2020.

ASC 740 also clarifies the accounting for uncertainty in income taxes recognized in an enterprise’s financial statements and prescribes a recognition threshold and measurement process for financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return. For those benefits to be recognized, a tax position must be more-likely-than-not to be sustained upon examination by taxing authorities. ASC 740 also provides guidance on derecognition, classification, interest and penalties, accounting in interim period, disclosure and transition.

The Company recognizes accrued interest and penalties related to unrecognized tax benefits as income tax expense. There were no unrecognized tax benefits and no amounts accrued for interest and penalties as of September 30, 2021 and December 31, 2020. The Company is currently not aware of any issues under review that could result in significant payments, accruals or material deviation from its position. The Company has identified the United States as its only “major” tax jurisdiction. The Company is subject to income tax examinations by major taxing authorities since inception. These potential examinations may include questioning the timing and amount of deductions, the nexus of income among various tax jurisdictions and compliance with federal and state tax laws. The Company’s management does not expect that the total amount of unrecognized tax benefits will materially change over the next twelve months. The provision for income taxes was deemed to be de minimis for the three months and nine months ended September 30, 2021.

12

Net Income (Loss) Per Common Share

The Company has two classes of shares, Class A Common Stock and Class B Common Stock. Earnings and losses are shared pro rata between the two classes of shares. The Company has not considered the effect of the warrants sold in the Initial Public Offering and the Private Placement to purchase an aggregate of 14,575,000 of the Company’s Class A common stock in the calculation of diluted income (loss) per share, since their exercise is contingent upon future events. As a result, diluted net income (loss) per common share is the same as basic net income (loss) per common share for the period.

Reconciliation of Net Income (Loss) per Common Share

The Company’s condensed statement of operations includes a presentation of loss per share for common stock subject to redemption in a manner similar to the two-class method of income (loss) per share. Accordingly, basic and diluted loss per common share of Class A common stock and Class B common stock is calculated as follows:

	Three Months Ended September 30, 2021			Nine Months Ended September 30, 2021
Net Income (loss) per share for Class A common stock:
Allocation of income (loss) to Class A common stock	$	(1,887,399	)	$	63,247
Weighted average shares outstanding of Class A common stock		17,250,000			14,090,659
Basic and diluted net income (loss) per share, Class A common stock	$	(0.11	)	$	0.00
Net Income (loss) per share for Class B common stock:
Allocation of income (loss) to Class B common stock	$	(471,850	)	$	18,894
Basic weighted average shares outstanding of Class B common stock		4,312,500			4,209,478
Basic net income (loss) per share, Class B common stock	$	(0.11	)	$	0.00
Diluted weighted average shares outstanding of Class B common stock		4,312,500			4,312,500
Diluted net income (loss) per share, Class B common stock	$	(0.11	)	$	0.00

Fair Value of Financial Instruments

The Company follows the guidance in ASC 820, “Fair Value Measurement,” for its financial assets and liabilities that are re-measured and reported at fair value at each reporting period, and non-financial assets and liabilities that are re-measured and reported at fair value at least annually.

The fair value of the Company’s financial assets and liabilities reflects management’s estimate of amounts that the Company would have received in connection with the sale of the assets or paid in connection with the transfer of the liabilities in an orderly transaction between market participants at the measurement date. In connection with measuring the fair value of its assets and liabilities, the Company seeks to maximize the use of observable inputs (market data obtained from independent sources) and to minimize the use of unobservable inputs (internal assumptions about how market participants would price assets and liabilities). The following fair value hierarchy is used to classify assets and liabilities based on the observable inputs and unobservable inputs used in order to value the assets and liabilities:

Level 1 —  Valuations based on unadjusted quoted prices in active markets for identical assets or liabilities that the Company has the ability to access. Valuation adjustments and block discounts are not being applied. Since valuations are based on quoted prices that are readily and regularly available in an active market, valuation of these securities does not entail a significant degree of judgment.

13

Level 2 —  Valuations based on (i) quoted prices in active markets for similar assets and liabilities, (ii) quoted prices in markets that are not active for identical or similar assets, (iii) inputs other than quoted prices for the assets or liabilities, or (iv) inputs that are derived principally from or corroborated by market through correlation or other means.

Level 3 —  Valuations based on inputs that are unobservable and significant to the overall fair value measurement.

See Note 9 for additional information on assets and liabilities measured at fair value.

Recent Accounting Pronouncements

In August 2020, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2020-06, Debt — Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging — Contracts in Entity’s Own Equity (Subtopic 815-40) (“ASU 2020-06”) to simplify accounting for certain financial instruments. ASU 2020-06 eliminates the current models that require separation of beneficial conversion and cash conversion features from convertible instruments and simplifies the derivative scope exception guidance pertaining to equity classification of contracts in an entity’s own equity. The new standard also introduces additional disclosures for convertible debt and freestanding instruments that are indexed to and settled in an entity’s own equity. ASU 2020-06 amends the diluted earnings per share guidance, including the requirement to use the if-converted method for all convertible instruments. ASU 2020-06 is effective January 1, 2022 and should be applied on a full or modified retrospective basis, with early adoption permitted beginning on January 1, 2021. The Company is currently assessing the impact, if any, that ASU 2020-06 would have on its financial position, results of operations or cash flows.

Management does not believe that any other recently issued, but not effective, accounting standards, if currently adopted, would have a material effect on the Company’s financial statements.

Note 4 — Initial Public Offering

Public Units

On February 19, 2021, the Company sold 17,250,000 Units, at a purchase price of $10.00 per Unit, which included the full exercise by the underwriters of the over-allotment option to purchase an additional 2,250,000 Units. Each Unit consists of one share of Class A common stock, and one-half of one redeemable warrant to purchase one share of Class A common stock (the “Public Warrants”).

Public Warrants

Each whole warrant entitles the registered holder to purchase one share of the Company’s Class A common stock at a price of $11.50 per share, subject to adjustment. Pursuant to the warrant agreement, a warrant holder may exercise its warrants only for a whole number of shares of Class A common stock. No fractional warrants will be issued upon separation of the Units and only whole warrants will trade. The Public Warrants will become exercisable on the later of (a) 30 days after the completion of a Business Combination and (b) 12 months from the closing of the IPO. The Public Warrants will expire five years after the completion of a Business Combination or earlier upon redemption or liquidation.

The Company will not be obligated to deliver any shares of Class A common stock pursuant to the exercise of a warrant and will have no obligation to settle such warrant exercise unless a registration statement under the Securities Act covering the issuance of the shares of Class A common stock issuable upon exercise of the warrants is then effective and a current prospectus relating to those shares of Class A common stock is available, subject to the Company satisfying its obligations with respect to registration, or a valid exemption from registration is available. No warrant will be exercisable for cash or on a cashless basis, and the Company will not be obligated to issue any shares to holders seeking to exercise their warrants, unless the issuance of the shares upon such exercise is registered or qualified under the securities laws of the state of residence of the exercising holder, or an exemption from registration is available.

14

The Company has agreed that as soon as practicable, but in no event later than 20 business days after the closing of a Business Combination, the Company will use its commercially reasonable efforts to file, and within 60 business days following a Business Combination to have declared effective, a registration statement covering the issuance of the shares of Class A common stock issuable upon exercise of the warrants and to maintain a current prospectus relating to those shares of Class A common stock until the warrants expire or are redeemed. Notwithstanding the above, if the Class A common stock is at the time of any exercise of a warrant not listed on a national securities exchange such that it satisfies the definition of a “covered security” under Section 18(b)(1) of the Securities Act, the Company may, at its option, require holders of Public Warrants who exercise their warrants to do so on a “cashless basis” in accordance with Section 3(a)(9) of the Securities Act and, in the event the Company so elects, the Company will not be required to file or maintain in effect a registration statement, but will use its commercially reasonable efforts to register or qualify the shares under applicable blue sky laws to the extent an exemption is not available.

Redemption of Warrants When the Price per Share of Class A Common Stock Equals or Exceeds $18.00

Once the warrants become exercisable, the Company may redeem the outstanding warrants:

● in whole and not in part;

● at a price of $0.01 per warrant;

● upon not less than 30 days’ prior written notice of redemption (the “30-day redemption period”) to each warrant holder; and

● if, and only if, the last reported sale price of the Class A common stock equals or exceeds $18.00 per share (as adjusted for stock splits, stock dividends, reorganizations, recapitalizations and the like) for any 20 trading days within a 30-trading day period ending on the third trading day prior the date on which the Company sends the notice of redemption to the warrant holders.

If and when the warrants become redeemable by the Company, the Company may exercise the redemption right even if it is unable to register or qualify the underlying securities or sale under all applicable state securities laws.

Redemption of Warrants When the Price per Share of Class A Common Stock Equals or Exceeds $10.00

Once the warrants become exercisable, the Company may redeem the outstanding warrants:

● in whole and not in part;

● at a price of $0.10 per warrant provided that the holder will be able to exercise their warrants on cashless basis prior to redemption and receive that number of shares based on the redemption date and the fair market value of the Class A common stock;

● upon a minimum of 30 days’ prior written notice of redemption;

● if, and only if, the last reported sale price of the Class A common stock equals or exceeds $10.00 per share (as adjusted for stock splits, stock dividends, reorganizations, recapitalizations and the like) for any 20 trading days within a 30-trading day period ending on the third trading day prior to the date on which the Company sends the notice of redemption to the warrant holders; and

● if the last reported sale price of the Class A common stock for any 20 trading days within a 30-trading day period ending on the third trading day prior to the date on which the Company sends the notice of redemption to the warrant holders is less than $18.00 per share (as adjusted for stock splits, stock dividends, reorganizations, recapitalizations and the like), the Private Warrants must also be concurrently called for redemption on the same terms as the outstanding Public Warrants, as described above.

If the Company calls the Public Warrants for redemption, as described above, its management will have the option to require any holder that wishes to exercise the Public Warrants to do so on a “cashless basis,” as described in the warrant agreement.

15

In addition, if (x) the Company issues additional shares of Class A common stock or equity-linked securities for capital raising purposes in connection with the closing of a Business Combination at an issue price or effective issue price of less than $9.20 per share (with such issue price or effective issue price to be determined in good faith by the Company’s board of directors and, in the case of any such issuance to the sponsor or its affiliates, without taking into account any founder shares held by the sponsor or such affiliates, as applicable, prior to such issuance) (the “Newly Issued Price”), (y) the aggregate gross proceeds from such issuances represent more than 60% of the total equity proceeds, and interest thereon, available for the funding of a Business Combination on the date of the consummation of a Business Combination (net of redemptions), and (z) the volume weighted average trading price of the Company’s common stock during the 20 trading day period starting on the trading day prior to the day on which the Company consummates a Business Combination (such price, the “Market Value”) is below $9.20 per share, the exercise price of the warrants will be adjusted (to the nearest cent) to be equal to 115% of the higher of the Market Value and the Newly Issued Price, and the $18.00 per share redemption trigger price described above will be adjusted (to the nearest cent) to be equal to 180% of the higher of the Market Value and the Newly Issued Price, and the $10.00 per share redemption trigger described above will be adjusted (to the nearest cent) to be equal to the higher of the Market Value and the Newly Issued Price.

Note 5 — Private Placement

Simultaneously with the closing of the IPO, the Sponsor and certain of the Company’s directors and advisors purchased an aggregate of 5,950,000 Private Warrants at a price of $1.00 per Private Warrant, for an aggregate purchase price of $5,950,000, in a private placement. A portion of the proceeds from the private placement was added to the proceeds from the IPO held in the Trust Account.

The Private Placement Warrants are identical to the Public Warrants underlying the Units sold in the IPO, except that the Private Placement Warrants and the shares of Class A common stock issuable upon the exercise of the Private Placement Warrants will not be transferable, assignable or saleable until 30 days after the completion of a Business Combination, subject to certain limited exceptions. Additionally, the Private Placement Warrants will be exercisable on a cashless basis and be non-redeemable, except as described above, so long as they are held by the Sponsor or its permitted transferees. If the Private Placement Warrants are held by someone other than the Sponsor or its permitted transferees, the Private Placement Warrants will be redeemable by the Company and exercisable by such holders on the same basis as the Public Warrants.

Note 6 — Related Party Transactions

Founder Shares

On December 11, 2020, the Sponsor paid $25,000 to cover certain offering costs of the Company in consideration for 3,593,750 shares of Class B common stock (the “Founder Shares”). On February 16, 2021 the Company effected a stock dividend of 718,750 shares with respect to the Class B common stock, resulting in the initial stockholders holding an aggregate of 4,312,500 Founder Shares. The accompanying financial statements have been retroactively adjusted to reflect the stock dividend in the share capitalization.  The Founder Shares included an aggregate of up to 562,500 shares subject to forfeiture if the option to purchase additional units was not exercised by the underwriter in full. On February 19, 2021, the underwriter fully exercised its over-allotment option, hence, the 562,500 Founder Shares are no longer subject to forfeiture.

The Sponsor has agreed, subject to limited exceptions, not to transfer, assign or sell any of the Founder Shares until the earlier to occur of: (i) one year after the completion of a Business Combination and (ii) subsequent to a Business Combination, (x) if the last reported sale price of the Class A common stock equals or exceeds $12.00 per share (as adjusted for stock splits, stock capitalizations, reorganizations, recapitalizations and the like) for any 20 trading days within any 30-trading day period commencing at least 150 days after a Business Combination, or (y) the date on which the Company completes a liquidation, merger, capital stock exchange or other similar transaction that results in all of the Public Stockholders having the right to exchange their shares of common stock for cash, securities or other property.

Due to Related Party

The balance of $14,957 represents the amounts accrued for the administrative support services provided by Sponsor.

16

Promissory Note — Related Party

On December 18, 2020, Company issued an unsecured promissory note to the Sponsor for an aggregate of up to $300,000 to cover expenses related to the IPO. This loan is non-interest bearing and payable on the earlier of April 30, 2021 or the completion of the IPO. As of December 31, 2020, the Company had drawn down $176,000 under the promissory note and, on February 22, 2021, the Company paid the full balance on the note from the proceeds of the IPO.

Related Party Loans

In order to finance transaction costs in connection with a Business Combination, the Sponsor or certain of the Company’s officers and directors may, but are not obligated to, loan the Company funds as may be required (“Working Capital Loans”). Such Working Capital Loans would be evidenced by promissory notes. The notes may be repaid upon completion of a Business Combination, without interest, or, at the lender’s discretion, up to $2,000,000 of the notes may be converted upon completion of a Business Combination into warrants at a price of $1.00 per warrant. Such warrants would be identical to the Private Placement Warrants. In the event that a Business Combination does not close, the Company may use a portion of proceeds held outside the Trust Account to repay the Working Capital Loans but no proceeds held in the Trust Account would be used to repay the Working Capital Loans. As of September 30, 2021, and December 31, 2020, there were no amounts outstanding under the Working Capital Loans.

Administrative Service Fee

Commencing on the date of the IPO, the Company agree to reimburse its Sponsor for office space, administrative and support services provided to members of the Company’s management team in an amount not to exceed $2,000 per month. Upon completion of the Company’s Business Combination or its liquidation, the Company will cease paying these monthly fees.  For the three and nine months ended September 30, 2021, the Company has recorded $6,000 and $14,857 of administrative service fees, respectively.

Note 7 — Commitments and Contingencies

Registration Rights

The holders of the Founder Shares, Private Placement Warrants and warrants that may be issued upon conversion of Working Capital Loans (and any shares of common stock issuable upon the exercise of the Private Placement Warrants or warrants issued upon conversion of the Working Capital Loans and upon conversion of the Founder Shares) will be entitled to registration rights pursuant to a registration rights agreement dated February 16, 2021, requiring the Company to register such securities for resale (in the case of the Founder Shares, only after conversion to shares of Class A common stock). The holders of these securities will be entitled to make up to three demands, excluding short form registration demands, that the Company register such securities. In addition, the holders have certain “piggy-back” registration rights with respect to registration statements filed subsequent to completion of a Business Combination and rights to require the Company to register for resale such securities pursuant to Rule 415 under the Securities Act. However, the registration rights agreement provides that the Company will not be required to effect or permit any registration or cause any registration statement to become effective until the securities covered thereby are released from their lock-up restrictions. The Company will bear the expenses incurred in connection with the filing of any such registration statements.

Underwriting Agreement

The underwriter had a 45-day option from the date of the IPO to purchase up to an aggregate of 2,250,000 additional Units at the public offering price less the underwriting commissions to cover over-allotments, if any. On February 19, 2021, the underwriter fully exercised its over-allotment option and was paid a cash underwriting discount of $0.20 per Unit, or $3,450,000 in the aggregate.

The underwriters are entitled to deferred underwriting fee of 3.5% of the gross proceeds of the IPO held in the Trust Account, or $6,037,500, upon the completion of the Company’s initial Business Combination subject to the terms of the underwriting agreement.

Note 8 — Stockholders’ Equity

Preferred Stock — The Company is authorized to issue 1,000,000 shares of preferred stock with a par value of $0.0001 per share with such designations, voting and other rights and preferences as may be determined from time to time by the Company’s board of directors. At September 30, 2021 and December 31, 2020, there were no shares of preferred stock issued or outstanding.

17

Class A Common Stock — The Company is authorized to issue 200,000,000 shares of Class A common stock with a par value of $0.0001 per share. Holders of Class A common stock are entitled to one vote for each share.  At September 30, 2021 and December 31, 2020, there were 17,250,000 and 0 shares issued and outstanding, including 17,250,000 and 0 shares subject to possible redemption, respectively.

Class B Common Stock — The Company is authorized to issue 20,000,000 shares of Class B common stock with a par value of $0.0001 per share. At September 30, 2021 and December 31, 2020, there were 4,312,500 shares issued and outstanding, respectively.

Only holders of the Class B common stock will have the right to vote on the election of directors prior to the Business Combination. Holders of Class A common stock and holders of Class B common stock will vote together as a single class on all matters submitted to a vote of our stockholders except as otherwise required by law.

The shares of Class B common stock will automatically convert into Class A common stock at the time of a Business Combination, or earlier at the option of the holder, on a one-for-one basis, subject to adjustment. In the case that additional shares of Class A common stock, or equity-linked securities, are issued or deemed issued in excess of the amounts issued in the IPO and related to the closing of a Business Combination, the ratio at which shares of Class B common stock shall convert into shares of Class A common stock will be adjusted (unless the holders of a majority of the then-outstanding shares of Class B common stock agree to waive such adjustment with respect to any such issuance or deemed issuance) so that the number of shares of Class A common stock issuable upon conversion of all shares of Class B common stock will equal, in the aggregate, on an as-converted basis, 20% of the total number of all shares of common stock outstanding upon the completion of the IPO plus all shares of Class A common stock and equity-linked securities issued or deemed issued in connection with a Business Combination (net of the number of shares of Class A common stock redeemed in connection with a Business Combination), excluding any shares or equity-linked securities issued or issuable to any seller in a Business Combination.

Note 9 — Fair Value Measurements

The following table presents information about the Company’s liabilities that are measured at fair value on a recurring basis at September 30, 2021, and indicates the fair value hierarchy of the valuation inputs the Company utilized to determine such fair value:

	September 30		Quoted Prices In Active Markets		Significant Other Observable Inputs		Significant Other Unobservable Inputs
	2021		(Level 1)		(Level 2)		(Level 3)
Liabilities:
Public Warrants Liability	$	7,762,500	$	7,762,500	$	-	$	-
Private Placement Warrants Liability		6,324,850		-		-		6,324,850
	$	14,087,350	$	7,762,500	$	-	$	6,324,850

The Warrants are accounted for as liabilities in accordance with ASC 815-40 and are presented within warrant liabilities on the Condensed Balance Sheet. The warrant liabilities are measured at fair value at inception and on a recurring basis, with changes in fair value presented within change in fair value of warrant liabilities in the Condensed Statement of Operations.

The Company established the initial fair value of the Public Warrants and Private Warrants on February 19, 2021, the date of the Company’s Initial Public Offering using a Monte Carlo simulation model. The Company established the fair value of the Private Warrants on September 30, 2021 using a Monto Carlo simulation model. The Public and Private Warrants were classified as Level 3 at the initial measurement date and the Private Warrants were classified as Level 3 at September 30, 2021 due to the use of unobservable inputs.  As of September 30, 2021, the Public Warrants were trading separately from the Units, and the quoted market price was used to establish fair value.

18

The following table provides a reconciliation of changes in fair value of the beginning and ending balances for our liabilities classified as level 3:

	Warrant Liability
Fair value at January 1, 2021	$	-
Initial classification of Public and Private Warrant liability at February 19, 2021		17,605,070
Change in fair value		723,798
Fair Value at March 31, 2021	$	18,328,868
Change in fair value		(6,353,699	)
Transfer of Public Warrant liability to Level 1		(6,555,000	)
Fair Value at June 30, 2021	$	5,420,169
Change in fair value		904,681
Fair Value at September 30, 2021	$	6,324,850

The key inputs into the Monte Carlo simulation as September 30, 2021 were as follows:

	September 30, 2021
Inputs
Risk-free interest rate		1.11	%
Expected remaining term (years)		5.75
Expected volatility		17.7	%
Stock price	$	9.75

The carrying value, excluding gross unrealized holding loss and fair value of held to maturity securities on September 30, 2021 are as follows:

	Carrying Value as of September 30, 2021		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value as of September 30, 2021
U.S. Treasury Securities		172,516,929		-		(2,041	)		172,514,888
	$	172,517,299	$	-	$	(2,041	)	$	172,515,258

Note 10 — Subsequent Events

The Company evaluated subsequent events and transactions that occurred after the balance sheet date up to the date that the financial statements were issued. Based upon this review, the Company did not identify any subsequent events that would have required adjustment or disclosure in the financial statements, other than the restatement discussed in note 2.

19

ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

References to the “Company,” “our,” “us” or “we” refer to SportsTek Acquisition Corp.  The following discussion and analysis of the Company’s financial condition and results of operations should be read in conjunction with the unaudited condensed financial statements and the notes thereto contained elsewhere in this report. Certain information contained in the discussion and analysis set forth below includes forward-looking statements that involve risks and uncertainties.

Cautionary Note Regarding Forward-Looking Statements

This Quarterly Report on Form 10-Q/A includes forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”). We have based these forward-looking statements on our current expectations and projections about future events. These forward-looking statements are subject to known and unknown risks, uncertainties and assumptions about us that may cause our actual results, levels of activity, performance or achievements to be materially different from any future results, levels of activity, performance or achievements expressed or implied by such forward-looking statements. In some cases, you can identify forward-looking statements by terminology such as “may,” “should,” “could,” “would,” “expect,” “plan,” “anticipate,” “believe,” “estimate,” “continue,” or the negative of such terms or other similar expressions. Such statements include, but are not limited to, possible business combinations and the financing thereof, and related matters, as well as all other statements other than statements of historical fact included in this Form 10-Q/A. Factors that might cause or contribute to such a discrepancy include, but are not limited to, those described in our other Securities and Exchange Commission (“SEC”) filings.

Overview

We are a blank check company incorporated in Delaware on December 7, 2020 for the purpose of effecting a merger, capital stock exchange, asset acquisition, stock purchase, reorganization or similar business combination with one or more businesses (the “Business Combination”). Our sponsor is JTJT Partners LLC, a Delaware limited liability company.

The registration statement for our IPO was declared effective on February 16, 2021. On February 19, 2021, we consummated the IPO of 17,250,000 units (including 2,250,000 units issued to the Underwriters pursuant to the exercise in full of the over-allotment option granted to the Underwriters) (“Units” and, with respect to the Class A common stock included in the Units being offered, the “Public Shares”), at $10.00 per Unit, generating gross proceeds of $172.5 million, and incurring offering costs of approximately $10.3 million, inclusive of approximately $6.0 million in deferred underwriting commissions.

Simultaneously with the closing of the IPO, we consummated the private placement (“Private Placement”) of 5,950,000 warrants at a price of $1.00 per warrant (“Private Placement Warrants” and, together with the warrants included in the Units, the “Warrants”) to the Sponsor, generating gross proceeds of approximately $5.95 million.

Upon the closing of the IPO and the Private Placement on February 19, 2021, $172.5 million ($10.00 per Unit) of the net proceeds of the sale of the Units in the IPO and the Private Placement were placed in a trust account (“Trust Account”) located in the United States with Continental Stock Transfer & Trust Company acting as trustee, and invested only in U.S. “government securities,” within the meaning of Section 2(a)(16) of the Investment Company Act of 1940, as amended (the “Investment Company Act”), having a maturity of 185 days or less or in money market funds meeting certain conditions under Rule 2a-7 promulgated under the Investment Company Act, which invest only in direct U.S. government treasury obligations, as determined by the Company, until the earlier of: (i) the completion of a Business Combination and (ii) the distribution of the Trust Account as described below.

20

If we have not completed a Business Combination within 24 months from the closing of the IPO, we will (i) cease all operations except for the purpose of winding up, (ii) as promptly as reasonably possible but not more than ten business days thereafter, redeem the Public Shares, at a per-share price, payable in cash, equal to the aggregate amount then on deposit in the Trust Account, including interest earned on the funds held in the Trust Account and not previously released to us to pay its taxes (less up to $100,000 of interest to pay dissolution expenses), divided by the number of then outstanding Public Shares, which redemption will completely extinguish Public Stockholders’ rights as stockholders (including the right to receive further liquidating distributions, if any), and (iii) as promptly as reasonably possible following such redemption, subject to the approval of the remaining stockholders and our board of directors, liquidate and dissolve, subject in each case to our obligations under Delaware law to provide for claims of creditors and the requirements of other applicable law.

Results of Operations

For the three months ended September 30, 2021, we had a net loss of approximately $2.4 million, which included a loss from the change in fair value of warrant liabilities of $2.1 million and a loss from operations of $0.3 million.

For the nine months ended September 30, 2021, we had a net income of approximately $0.1 million, which included a gain from the change in fair value of warrant liabilities of $2.0 million, offset by a loss from operations of $1.3 million, and offering cost expense allocated to warrants of $0.6 million.

Our business activities from inception to September 30, 2021 consisted primarily of our formation and completing our IPO, and since the offering, our activity has been limited to identifying and evaluating prospective acquisition targets for a Business Combination.

Liquidity and Capital Resources

As of September 30, 2021, the Company had approximately $0.7 million in its operating bank account, and working capital of approximately $0.4 million.

The Company’s liquidity needs up to February 19, 2021 were satisfied through a capital contribution from the Sponsor of $25,000 for the Founder Shares and the loan under an unsecured promissory note from the Sponsor of $176,000.  The promissory note from the Sponsor was paid in full as of February 22, 2021. In addition, in order to finance transaction costs in connection with a Business Combination, the Company’s Sponsor or an affiliate of the Sponsor or certain of the Company’s officers and directors may, but are not obligated to, provide the Company Working Capital Loans. As of September 30, 2021, there were no amounts outstanding under any Working Capital Loans.

Based on the foregoing, management believes that the Company will have sufficient working capital and borrowing capacity to meet its needs through the earlier of the consummation of a Business Combination or one year from this filing. Over this time period, we will be using these funds held outside of the Trust Account for paying existing accounts payable, identifying and evaluating prospective initial Business Combination candidates, performing due diligence on prospective target businesses, paying for travel expenditures, selecting the target business to merge with or acquire, and structuring, negotiating and consummating the Business Combination.

Contractual Obligations

As of September 30, 2021, we do not have any long-term debt obligations, capital lease obligations, operating lease obligations, purchase obligations or long-term liabilities.

Critical Accounting Policies

This management’s discussion and analysis of our financial condition and results of operations is based on our unaudited condensed financial statements, which have been prepared in accordance with U.S. GAAP. The preparation of these unaudited condensed financial statements requires us to make estimates and judgments that affect the reported amounts of assets, liabilities, revenues and expenses and the disclosure of contingent assets and liabilities in our unaudited condensed financial statements. On an ongoing basis, we evaluate our estimates and judgments, including those related to fair value of financial instruments and accrued expenses. We base our estimates on historical experience, known trends and events and various other factors that we believe to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources. Actual results may differ from these estimates under different assumptions or conditions.

21

Warrant Liabilities

We evaluated the Public Warrants and Private Placement Warrants (collectively, “Warrants”) in accordance with ASC 815-40, “Derivatives and Hedging — Contracts in Entity’s Own Equity”, and concluded that a provision in the Warrant Agreement related to certain tender or exchange offers precludes the Warrants from being accounted for as components of equity. As the Warrants meet the definition of a derivative as contemplated in ASC 815, the Warrants are recorded as derivative liabilities on the Condensed Balance Sheet and measured at fair value at inception (on the date of the IPO) and at each reporting date in accordance with ASC 820, “Fair Value Measurement”, with changes in fair value recognized in the Condensed Statement of Operations in the period of change.

Offering Costs Associated with the Initial Public Offering

The Company complies with the requirements of the ASC 340-10-S99-1. Offering costs consisted of legal, accounting, underwriting fees and other costs incurred through the Initial Public Offering that were directly related to the Initial Public Offering.  Offering costs are allocated to the separable financial instruments issued in the Initial Public Offering based on a relative fair value basis, compared to total proceeds received.  Offering costs associated with warrant liabilities are expensed as incurred and are presented as non-operating expenses in the statement of operations.  Offering costs associated with the Class A common stock were charged to temporary equity upon the completion of the Initial Public Offering.

Common Stock Subject to Possible Redemption

All of the 17,250,000 Class A Common Stock sold as part of the Units in the Public Offering contain a redemption feature which allows for the redemption of such public shares in connection with the Company’s liquidation, if there is a stockholder vote or tender offer in connection with the Business Combination and in connection with certain amendments to the Company’s second amended and restated certificate of incorporation. In accordance with SEC and its staff’s guidance on redeemable equity instruments, which has been codified in ASC 480-10-S99, redemption provisions not solely within the control of the Company require common stock subject to redemption to be classified outside of permanent equity. Ordinary liquidation events, which involve the redemption and liquidation of all of the entity’s equity instruments, are excluded from the provisions of ASC 480.  Accordingly, at September 30, 2021 and December 31, 2020, all shares of Class A common stock subject to possible redemption is presented as temporary equity, outside of the stockholders’ equity section of the Company’s condensed balance sheets, respectively.

The Company recognizes changes in redemption value immediately as they occur and adjusts the carrying value of redeemable common stock to equal the redemption value at the end of each reporting period. Increases or decreases in the carrying amount of redeemable common stock are affected by charges against additional paid in capital and accumulated deficit.

Net Income (Loss) Per Common Share

The Company has two classes of shares, Class A Common Stock and Class B Common Stock. Earnings and losses are shared pro rata between the two classes of shares. The Company has not considered the effect of the warrants sold in the Initial Public Offering and the Private Placement to purchase an aggregate of 14,575,000 of the Company’s Class A common stock in the calculation of diluted income (loss) per share, since they are not yet exercisable.  As a result, diluted net income (loss) per common share is the same as basic net income (loss) per common share for the period.

Recent Accounting Pronouncements

In August 2020, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2020-06, Debt — Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging — Contracts in Entity’s Own Equity (Subtopic 815-40) (“ASU 2020-06”) to simplify accounting for certain financial instruments. ASU 2020-06 eliminates the current models that require separation of beneficial conversion and cash conversion features from convertible instruments and simplifies the derivative scope exception guidance pertaining to equity classification of contracts in an entity’s own equity. The new standard also introduces additional disclosures for convertible debt and freestanding instruments that are indexed to and settled in an entity’s own equity. ASU 2020-06 amends the diluted earnings per share guidance, including the requirement to use the if-converted method for all convertible instruments. ASU 2020-06 is effective January 1, 2022 and should be applied on a full or modified retrospective basis, with early adoption permitted beginning on January 1, 2021. The Company is currently assessing the impact, if any, that ASU 2020-06 would have on its financial position, results of operations or cash flows.

22

Our management does not believe that any other recently issued, but not yet effective, accounting standards if currently adopted would have a material effect on the accompanying unaudited condensed financial statements.

Off-Balance Sheet Arrangements

As of September 30, 2021, we did not have any off-balance sheet arrangements as defined in Item 303(a)(4)(ii) of Regulation S-K.

ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

As of September 30, 2021, we were not subject to any market or interest rate risk. Following the consummation of our Initial Public Offering, the net proceeds of our Initial Public Offering, including amounts in the Trust Account, have been invested in certain U.S. government securities with a maturity of 185 days or less or in certain money market funds that invest solely in U.S. treasuries. Due to the short-term nature of these investments, we believe there will be no associated material exposure to interest rate risk.

ITEM 4. CONTROLS AND PROCEDURES

Disclosure controls and procedures are controls and other procedures that are designed to ensure that information required to be disclosed in our reports filed or submitted under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in the SEC’s rules and forms. Disclosure controls and procedures include, without limitation, controls and procedures designed to ensure that information required to be disclosed in our reports filed or submitted under the Exchange Act is accumulated and communicated to our management, including the Co-Chief Executive Officers and Chief Financial Officer, to allow timely decisions regarding required disclosure.

Evaluation of Disclosure Controls and Procedures

As required by Rules 13a-15 and 15d-15 under the Exchange Act, our Co-Chief Executive Officers and Chief Financial Officer carried out an evaluation of the effectiveness of the design and operation of our disclosure controls and procedures as of September 30, 2021. Based upon their evaluation, our Co-Chief Executive Officers and Chief Financial Officer concluded that our disclosure controls and procedures (as defined in Rules 13a-15 (e) and 15d-15 (e) under the Exchange Act) were not effective due to a material weakness in our internal control over financial reporting due to the restatements of our March 31, 2021 and June 30, 2021 financial statements (the “restatements”) regarding the classification of redeemable Class A common stock, as described below.  The material weakness was caused by the misapplication of accounting guidance for complex financial instruments.  The Company had previously classified a portion of the Class A common stock in permanent equity. The Company restated its financial statements to classify all Class A common stock as temporary equity and any related impact, as the threshold in its charter would not change the nature of the underlying shares as redeemable and thus would be required to be disclosed outside of permanent equity. In light of this material weakness, we performed additional analysis as deemed necessary to ensure that our unaudited interim financial statements were prepared in accordance with U.S. generally accepted accounting principles.  Accordingly, management believes that the financial statements included in this Quarterly Report on Form 10-Q/A present fairly in all material respects our financial position, results of operations and cash flows for the period presented.

It is noted that the non-cash adjustments to the financial statement do not impact the amounts previously reported for our cash and cash equivalents or total assets.

Changes in Internal Control Over Financial Reporting

There were no changes in our internal control over financial reporting (as such term is defined in Rules 13a-15(f) and 15d-15(f) under the Exchange Act) during the most recent fiscal quarter that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

We recognize the importance of the control environment as it sets the overall tone for the Company and is the foundation for all other components of internal control. Consequently, we designed and implemented remediation measures to address the material weakness previously identified and enhance our internal control over financial reporting. In light of the material weakness, we enhanced our processes to identify and appropriately apply applicable accounting requirements to better evaluate and understand the nuances of the complex accounting standards that apply to our condensed financial statements, including providing enhanced access to accounting literature, research materials and documents and increased communication among our personnel and third-party professionals with whom we consult regarding complex accounting applications.

23

PART II - OTHER INFORMATION

ITEM 1. LEGAL PROCEEDINGS.

None.

ITEM 1. A.  RISK FACTORS.

There were no material changes from the risks disclosed in the Risk Factors section of our Annual Report on Form 10-K for the year ended December, 31, 2020, except as described below. Any of these factors could result in a significant or material adverse effect on our results of operations or financial condition. Additional risk factors not presently known to us or that we currently deem immaterial may also impair our business or results of operations.

We have identified a material weakness in our internal control over financial reporting as of September 30, 2021. If we are unable to develop and maintain an effective system of internal control over financial reporting, we may not be able to accurately report our financial results in a timely manner, which may adversely affect investor confidence in us and materially and adversely affect our business and operating results

As described elsewhere in this Quarterly Report on Form 10-Q/A, we have identified a material weakness in our internal control over financial reporting related to the Company’s accounting and reporting of complex financial instruments, including application of ASC 480-10-S99-3A to its accounting classification of public shares. As a result of this material weakness, our management has concluded that our disclosure controls and procedures were not effective as of September 30, 2021. See “Note 2-Restatement of Previously Issued Financial Statements” to the accompanying financial statements, as well as Part I. Item 4. Controls and Procedures included in this Quarterly Report on Form 10-Q/A. We have taken a number of measures to remediate the material weaknesses described herein. However, if we are unable to remediate our material weaknesses in a timely manner or we identify additional material weaknesses, we may be unable to provide required financial information in a timely and reliable manner and we may incorrectly report financial information. Likewise, if our financial statements are not filed on a timely basis, we could be subject to sanctions or investigations by the stock exchange on which our ordinary shares are listed, the SEC or other regulatory authorities. The existence of material weaknesses in internal control over financial reporting could adversely affect our reputation or investor perceptions of us, which could have a negative effect on the trading price of our shares. We can give no assurance that the measures we have taken and plan to take in the future will remediate the material weakness identified or that any additional material weaknesses or restatements of financial results will not arise in the future due to a failure to implement and maintain adequate internal control over financial reporting or circumvention of these controls. Even if we are successful in strengthening our controls and procedures, in the future those controls and procedures may not be adequate to prevent or identify irregularities or errors or to facilitate the fair presentation of our financial statements.

A material weakness is a deficiency, or a combination of deficiencies, in internal control over financial reporting such that there is a reasonable possibility that a material misstatement of our annual or interim financial statements will not be prevented, or detected and corrected on a timely basis.

Effective internal controls are necessary for us to provide reliable financial reports and prevent fraud. We continue to evaluate steps to remediate the material weakness. These remediation measures may be time consuming and costly and there is no assurance that these initiatives will ultimately have the intended effects.

If we identify any new material weaknesses in the future, any such newly identified material weakness could limit our ability to prevent or detect a misstatement of our accounts or disclosures that could result in a material misstatement of our annual or interim financial statements. In such case, we may be unable to maintain compliance with securities law requirements regarding timely filing of periodic reports in addition to applicable stock exchange listing requirements, investors may lose confidence in our financial reporting and our stock price may decline as a result. We cannot assure you that any measures we may take in the future, will be sufficient to avoid potential future material weaknesses.

ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS.

None.

ITEM 3. DEFAULTS UPON SENIOR SECURITIES.

None.

ITEM 4. MINE SAFETY DISCLOSURES.

Not applicable.

ITEM 5. OTHER INFORMATION.

None.

24

ITEM 6. EXHIBITS.

The following exhibits are filed as part of, or incorporated by reference into, this Quarterly Report on Form 10-Q/A.

Exhibit	Description
31.1*	Certification of Principal Executive Officer Pursuant to Securities Exchange Act Rules 13a-14(a) and 15(d)-14(a), as adopted Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
31.2*	Certification of Principal Executive Officer Pursuant to Securities Exchange Act Rules 13a-14(a) and 15(d)-14(a), as adopted Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
31.3*	Certification of Principal Financial Officer Pursuant to Securities Exchange Act Rules 13a-14(a) and 15(d)-14(a), as adopted Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
32.1*	Certification of Principal Executive Officers and Principal Financial Officer Pursuant to U.S.C. Section 1350, as adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
101.INS*	XBRL Instance Document
101.CAL*	XBRL Taxonomy Extension Calculation Linkbase Document
101.SCH*	XBRL Taxonomy Extension Schema Document
101.DEF*	XBRL Taxonomy Extension Definition Linkbase Document
101.LAB*	XBRL Taxonomy Extension Labels Linkbase Document
101.PRE*	XBRL Taxonomy Extension Presentation Linkbase Document

* Filed herewith.

25

SIGNATURES

Pursuant to the requirements of Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

	SPORTSTEK ACQUISITION CORP.
Date: March 7, 2022
	By:	/s/ Jeffrey Luhnow
		Name:	Jeffrey Luhnow
		Title:	Chair and Co-Chief Executive Officer

By:	/s/ C. Tavo Hellmund
	Name:	C. Tavo Hellmund
	Title:	Co-Chief Executive Officer

By:	/s/ Timothy W. Clark
	Name:	Timothy W. Clark
	Title:	Chief Financial Officer and Chief Operating Officer

26

EX-31.1

Exhibit 31.1

CERTIFICATION PURSUANT TO

RULES 13a-14(a) AND 15d-14(a) UNDER THE SECURITIES EXCHANGE ACT OF 1934,

AS ADOPTED PURSUANT TO SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002

I, Jeffrey Luhnow, certify that:

1. I have reviewed this Quarterly Report on Form 10-Q/A  for the quarter ended September 30, 2021 of SportsTek Acquisition Corp.

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e))  for the registrant and have:

(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b) [Omitted];

(c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date:  March 7, 2022	By:	/s/ Jeffrey Luhnow
		Jeffrey Luhnow
		Co-Chief Executive Officer
		(Principal Executive Officer)

EX-31.2

Exhibit 31.2

CERTIFICATION PURSUANT TO

RULES 13a-14(a) AND 15d-14(a) UNDER THE SECURITIES EXCHANGE ACT OF 1934,

AS ADOPTED PURSUANT TO SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002

I, C. Tavo Hellmund, certify that:

1. I have reviewed this Quarterly Report on Form 10-Q/A  for the quarter ended September 30, 2021 of SportsTek Acquisition Corp.

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e))  for the registrant and have:

(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b) [Omitted];

(c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: March 7, 2022	By:	/s/ C. Tavo Hellmund
		C. Tavo Hellmund
		Co-Chief Executive Officer
		(Principal Executive Officer)

EX-31.3

Exhibit 31.3

CERTIFICATION PURSUANT TO

RULES 13a-14(a) AND 15d-14(a) UNDER THE SECURITIES EXCHANGE ACT OF 1934,

AS ADOPTED PURSUANT TO SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002

I, Timothy W. Clark, certify that:

1. I have reviewed this Quarterly Report on Form 10-Q/A for the quarter ended September 30, 2021 of SportsTek Acquisition Corp.

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b) [Omitted];

(c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: March 7, 2022	By:	/s/ Timothy W. Clark
		Timothy W. Clark
		Chief Financial Officer
		(Principal Financial and Accounting Officer)

EX-32.1

Exhibit 32.1

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350, AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report of SportsTek Acquisition Corp. (the “Registrant”) on Form 10-Q/A for the period ending September 30, 2021 as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I certify, in the capacity and on the date indicated below, pursuant to 18 U.S.C. § 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that:

(1) The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended; and

(2) The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Registrant.

Date: March 7 2022	By:	/s/ Jeffrey Luhnow
		Jeffrey Luhnow
		Co-Chief Executive Officer
Date: March 7, 2022	By:	/s/ C. Tavo Hellmund
		C. Tavo Hellmund
		Co-Chief Executive Officer
Date: March 7, 2022	By:	/s/ Timothy W. Clark
		Timothy W. Clark
		Chief Financial Officer and Chief Operating Officer

XML

Document and Entity Information - shares	9 Months Ended
	Sep. 30, 2021	Mar. 04, 2022
Entity Listings [Line Items]
Document Type	10-Q/A
Amendment Flag	true
Amendment Description	This Amendment No. 1 (“Amendment No. 1”) to the Quarterly Report on Form 10-Q/A amends the Quarterly Report on Form 10-Q of SportsTek Acquisition Corp. as of and for the period ended September 30, 2021, as filed with the Securities and Exchange Commission (“SEC”) on November 12, 2021. On November 12, 2021, SportsTek Acquisition Corp. (the “Company”) filed its Form 10-Q for the quarterly period ending September 30, 2021 (the “Q3 Form 10-Q”), which included a Note 2, Revision of Previously Issued Financial Statements, (“Note 2”) that describes a revision to the Company’s classification of its Class A common stock subject to redemption issued as part of the units sold in the Company’s initial public offering (“IPO”) on February 19, 2021. As described in Note 2, upon its IPO, the Company classified a portion of the Class A common stock subject to redemption as permanent equity to maintain net tangible assets greater than $5,000,000 on the basis that the Company will consummate its initial business combination only if the Company has net tangible assets of at least $5,000,001. Previously, the Company did not consider redeemable shares classified as temporary equity as part of net tangible assets. Effective with these financial statements, the Company revised this interpretation to include temporary equity in net tangible assets. The Company’s management re-evaluated the conclusion and determined that the Class A common stock subject to redemption included certain provisions that require classification of such Class A common stock as temporary equity. As a result, management corrected the error by reclassifying all Class A common stock subject to redemption as temporary equity. This resulted in a revision to the initial carrying value of the Class A common stock subject to possible redemption with the offset recorded to additional paid-in capital (to the extent available), accumulated deficit and Class A common stock subject to redemption. In connection with the change in presentation for the Class A common stock subject to redemption, the Company also revised its earnings per share calculation to allocate net income (loss) pro rata to Class A and Class B common stock. This presentation contemplates a Business Combination as the most likely outcome, in which case, both classes of common shares share pro rata in the income (loss) of the Company. Previously, the Company determined the changes were not qualitatively material to the Company’s previously issued financial statements and did not restate its financial statements. Instead, the Company revised its previously issued financial statements in Note 2 to its Q3 Form 10-Q. Following the filing of the Q3 Form 10-Q, management re-evaluated its assessment that the revisions were not material. Although the qualitative factors that management assessed tended to support a conclusion that the misstatements were not material, management determined that these factors were not strong enough to overcome the significant quantitative errors in the financial statements and that the qualitative and quantitative factors support a conclusion that the misstatements are material. As such, upon further consideration of the change, management determined the change in the Company’s classification of the Class A common stock subject to redemption and change to the Company’s presentation of earnings per share is material quantitatively and that the Company should restate its previously issued financial statements. Therefore, the Company’s management and the board of directors concluded that the Company’s previously issued (i) audited balance sheet as of February 19, 2021 (the “Post IPO Balance Sheet”), (ii) unaudited interim financial statements included in the Company’s Quarterly Report on Form 10-Q for the quarterly period ended March 31, 2021, filed with the SEC on May 28, 2021, and (iii) unaudited interim financial statements included in the Company’s Quarterly Report on Form 10-Q for the quarterly period ended June 30, 2021, filed with the SEC on August 13, 2021, should be restated to report all Class A common stock as temporary equity and should no longer be relied upon. As such, the Company will restate its interim unaudited financial statements for the quarterly periods ended March 31, 2021 and June 30, 2021 in this Quarterly Report on Form 10-Q/A.
Document Quarterly Report	true
Document Period End Date	Sep. 30, 2021
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2021
Document Fiscal Period Focus	Q3
Document Transition Report	false
Entity File Number	001-39378
Entity Registrant Name	SportsTek Acquisition Corp.
Entity Central Index Key	0001836259
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	85-4265519
Entity Address, Address Line One	2200 S. Utica Place, Suite 450
Entity Address, City or Town	Tulsa
Entity Address, State or Province	OK
Entity Address, Postal Zip Code	74114
City Area Code	918
Local Phone Number	957-1086
Entity Current Reporting Status	No
Entity Interactive Data Current	Yes
Entity Filer Category	Non-accelerated Filer
Entity Small Business	true
Entity Emerging Growth Company	true
Entity Ex Transition Period	false
Entity Shell Company	true
Units [Member]
Entity Listings [Line Items]
Title of 12(b) Security	Units, each consisting of one Class A common stock, par value $0.0001 per share, and one-half of one redeemable warrant
Trading Symbol	SPTKU
Security Exchange Name	NASDAQ
Class A Common Stock [Member]
Entity Listings [Line Items]
Title of 12(b) Security	Class A common stock included as part of the units
Trading Symbol	SPTK
Security Exchange Name	NASDAQ
Entity Common Stock, Shares Outstanding		17,250,000
Redeemable Warrants [Member]
Entity Listings [Line Items]
Title of 12(b) Security	Redeemable warrants, included in units, each warrant exercisable for one share of Class A common stock at an exercise price of $11.50 per share
Trading Symbol	SPTKW
Security Exchange Name	NASDAQ
Class B Common Stock [Member]
Entity Listings [Line Items]
Entity Common Stock, Shares Outstanding		4,312,500

XML

CONDENSED BALANCE SHEETS - USD ($)	Sep. 30, 2021	Dec. 31, 2020
Current Assets:
Cash	$ 674,319	$ 153,938
Prepaid expenses	502,069	0
Total current assets	1,176,388	153,938
Deferred offering costs associated with initial public offering	0	408,725
Cash and investments held in Trust Account	172,517,299	0
Total Assets	173,693,687	562,663
Current liabilities:
Accrued offering costs and expenses	796,655	362,230
Due to related party	14,957	0
Promissory note - related party	0	176,000
Total current liabilities	811,612	538,230
Deferred underwriting fee	6,037,500	0
Warrant liability	14,087,350	0
Total liabilities	20,936,462	538,230
Commitments
Class A Common Stock subject to possible redemption, $0.0001 par value; 17,250,000and no shares issued and outstanding at redemption value of $10.00 per share at September 30, 2021 and December 31, 2020, respectively	172,500,000	0
Stockholders' Equity (Deficit):
Preferred stock, $0.0001 par value; 1,000,000 shares authorized; none issued or outstanding	0	0
Additional paid-in capital	0	24,569
Accumulated deficit	(19,743,206)	(567)
Total stockholders' equity (deficit)	(19,742,775)	24,433
Total Liabilities and Stockholders' Equity (Deficit)	173,693,687	562,663
Class A Common Stock [Member]
Stockholders' Equity (Deficit):
Common stock	0	0
Class B Common Stock [Member]
Stockholders' Equity (Deficit):
Common stock	$ 431	$ 431

XML

CONDENSED BALANCE SHEETS (Parenthetical) - $ / shares	Sep. 30, 2021	Dec. 31, 2020
Liabilities and Stockholders' Equity (Deficit)
Common stock subject to possible redemption, shares outstanding (in shares)	17,250,000
Stockholders' Equity (Deficit):
Preferred stock, par value (in dollars per share)	$ 0.0001	$ 0.0001
Preferred stock, shares authorized (in shares)	1,000,000	1,000,000
Preferred stock, shares issued (in shares)	0	0
Preferred stock, shares outstanding (in shares)	0	0
Class A Common Stock [Member]
Liabilities and Stockholders' Equity (Deficit)
Common Stock subject to possible redemption, par value (in dollars per share)	$ 0.0001	$ 0.0001
Common stock subject to possible redemption, shares issued (in shares)	17,250,000	0
Common stock subject to possible redemption, shares outstanding (in shares)	17,250,000	0
Common Stock subject to possible redemption, redemption value (in dollars per share)	$ 10.00	$ 10.00
Stockholders' Equity (Deficit):
Common stock, par value (in dollars per share)	$ 0.0001	$ 0.0001
Common stock, shares authorized (in shares)	200,000,000	200,000,000
Common stock, shares issued (in shares)	0	0
Common stock, shares outstanding (in shares)	0	0
Class B Common Stock [Member]
Stockholders' Equity (Deficit):
Common stock, par value (in dollars per share)	$ 0.0001	$ 0.0001
Common stock, shares authorized (in shares)	20,000,000	20,000,000
Common stock, shares issued (in shares)	4,312,500	4,312,500
Common stock, shares outstanding (in shares)	4,312,500	4,312,500

XML

UNAUDITED CONDENSED STATEMENTS OF OPERATIONS - USD ($)	3 Months Ended	9 Months Ended
	Sep. 30, 2021	Sep. 30, 2021
Loss from Operations
Formation and operating costs	$ 252,818	$ 1,321,588
Loss from Operations	(252,818)	(1,321,588)
Other income (expense):
Interest earned on investments held in Trust Account	5,750	17,299
Offering costs allocated to warrants	0	(606,375)
Change in fair value of warrant liability	(2,112,181)	1,992,805
Total other income (expense), net	(2,106,431)	1,403,729
Net income (loss)	$ (2,359,249)	$ 82,141
Class A Common Stock [Member]
Other income (expense):
Basic weighted average shares outstanding (in shares)	17,250,000	14,090,659
Diluted weighted average shares outstanding (in shares)	17,250,000	14,090,659
Basic net income (loss) per share (in dollars per share)	$ (0.11)	$ 0.00
Diluted net income (loss) per share (in dollars per share)	$ (0.11)	$ 0.00
Class B Common Stock [Member]
Other income (expense):
Basic weighted average shares outstanding (in shares)	4,312,500	4,209,478
Diluted weighted average shares outstanding (in shares)	4,312,500	4,312,500
Basic net income (loss) per share (in dollars per share)	$ (0.11)	$ 0.00
Diluted net income (loss) per share (in dollars per share)	$ (0.11)	$ 0.00

XML

UNAUDITED CONDENSED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (DEFICIT) - USD ($)	Common Stock [Member] Class A Common Stock [Member]	Common Stock [Member] Class B Common Stock [Member]	Additional Paid-in Capital [Member]	Accumulated Deficit [Member]	Total
Balance at Dec. 31, 2020	$ 0	$ 431	$ 24,569	$ (567)	$ 24,433
Balance (in shares) at Dec. 31, 2020	0	4,312,500
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Accretion of Class A common stock subject to possible redemption	$ 0	$ 0	(24,569)	(19,824,780)	(19,849,349)
Net income (loss)	0	0	0	(2,898,231)	(2,898,231)
Balance at Mar. 31, 2021	$ 0	$ 431	0	(22,723,578)	(22,723,147)
Balance (in shares) at Mar. 31, 2021	0	4,312,500
Balance at Dec. 31, 2020	$ 0	$ 431	24,569	(567)	24,433
Balance (in shares) at Dec. 31, 2020	0	4,312,500
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income (loss)					82,141
Balance at Sep. 30, 2021	$ 0	$ 431	0	(19,743,206)	(19,742,775)
Balance (in shares) at Sep. 30, 2021	0	4,312,500
Balance at Mar. 31, 2021	$ 0	$ 431	0	(22,723,578)	(22,723,147)
Balance (in shares) at Mar. 31, 2021	0	4,312,500
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income (loss)	$ 0	$ 0	0	5,339,621	5,339,621
Balance at Jun. 30, 2021	$ 0	$ 431	0	(17,383,957)	(17,383,526)
Balance (in shares) at Jun. 30, 2021	0	4,312,500
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income (loss)	$ 0	$ 0	0	(2,359,249)	(2,359,249)
Balance at Sep. 30, 2021	$ 0	$ 431	$ 0	$ (19,743,206)	$ (19,742,775)
Balance (in shares) at Sep. 30, 2021	0	4,312,500

XML

UNAUDITED CONDENSED STATEMENT OF CASH FLOWS - USD ($)	3 Months Ended	9 Months Ended
	Sep. 30, 2021	Sep. 30, 2021
Cash flows from operating activities:
Net income	$ (2,359,249)	$ 82,141
Adjustments to reconcile net income to net cash used in operating activities:
Interest earned on investments held in Trust Account	(5,750)	(17,299)
Offering costs allocated to warrants	0	606,375
Change in fair value of warrant liability		(1,992,805)
Changes in operating assets and liabilities:
Prepaid expenses		(502,069)
Due to related party		14,957
Accrued offering costs and expenses		796,655
Net cash used in operating activities		(1,012,045)
Cash Flows from Investing Activities:
Investment of cash in Trust Account		(172,500,000)
Net cash used in investing activities		(172,500,000)
Cash Flows from Financing Activities:
Proceeds from sale of Units, net of underwriting discount		169,050,000
Proceeds from issuance of Private Placement Warrants		5,950,000
Repayment of promissory note - related party		(176,000)
Payment of offering costs		(791,574)
Net cash provided by financing activities		174,032,426
Net change in cash		520,381
Cash, beginning of period		153,938
Cash, end of the period	$ 674,319	674,319
Supplemental disclosure of cash flow information:
Deferred underwriters' discount payable charged to additional paid-in capital		$ 6,037,500

XML

Organization and Business Operations

9 Months Ended

Sep. 30, 2021

Organization and Business Operations [Abstract]

Organization and Business Operations

Note 1 — Organization and Business Operations

SportsTek Acquisition Corp. (the “Company”) is a blank check company incorporated as a Delaware corporation on December 7, 2020. The Company was formed for the purpose of effecting a merger, capital stock exchange, asset acquisition, stock purchase, reorganization or similar business combination with one or more businesses (“Business Combination”).

As of September 30, 2021, the Company had not commenced any operations. All activity through September 30, 2021 relates to the Company’s formation and the Initial Public Offering (“IPO”) which is described below, and identifying a target company for a Business Combination. The Company will not generate any operating revenues until after the completion of a Business Combination, at the earliest. The Company generates non-operating income in the form of interest income from the proceeds derived from the IPO.

The registration statement for the Company’s IPO was declared effective by the U.S. Securities and Exchange Commission (the “SEC”) on February 16, 2021 (the “Effective Date”). On February 19, 2021, the Company consummated the IPO of 17,250,000 units ((the “Units” and, with respect to the shares of Class A common stock included in the Units sold, the “Public Shares”), which included the full exercise by the underwriters of the over-allotment option to purchase an additional 2,250,000 Units, at $10.00 per Unit, generating gross proceeds of $172,500,000, which is discussed in Note 5. Each Unit consists of one share of common stock, and one-half of one redeemable warrant to purchase one share of Class A common stock at a price of $11.50 per whole share.

Simultaneously with the closing of the IPO, the Company consummated the sale of 5,950,000 Private Placement Warrants (the “Private Placement Warrants”), at a price of $1.00 per Private Placement Warrant, in a private placement to JTJT Partners LLC (the “Sponsor”) and certain of the Company’s directors and advisors, generating gross proceeds of $5,950,000, which is discussed in Note 6.

Transaction costs of the IPO amounted to $10,325,569 consisting of $3,450,000 of underwriting fee, $6,037,500 of deferred underwriting fee, and $838,069 of other offering costs.

Following the closing of the IPO on February 19, 2021, $172,500,000 ($10.00 per Unit) from the net offering proceeds of the sale of the Units in the IPO and the sale of the Private Placement Warrants was placed in a trust account (the “Trust Account”) and invested in U.S. government treasury bills with a maturity of 185 days or less or in money market funds investing solely in U.S. Treasuries, as determined by the Company, until the earlier of: (i) the completion of a Business Combination; (ii) the redemption of any Public Shares in connection with a stockholder vote to approve an amendment to the Company’s Certificate of Incorporation (a) to modify the substance or timing of the Company’s obligation to allow redemptions in connection with a Business Combination or to redeem 100% of the Public Shares if the Company has not consummated a Business Combination within 24 months from the closing of the IPO or (b) with respect to any other provision relating to stockholders’ rights or pre-initial business combination activity; and (iii) the redemption of any Public Shares if the Company has not consummated a Business Combination within 24 months from the closing of the IPO, subject to applicable law.

The Company will provide the holders of the outstanding Public Shares (the “Public Stockholders”) with the opportunity to redeem all or a portion of their Public Shares upon the completion of a Business Combination either (i) in connection with a stockholder meeting called to approve the Business Combination or (ii) by means of a tender offer. The decision as to whether the Company will seek stockholder approval of a Business Combination or conduct a tender offer will be made by the Company. The Public Stockholders will be entitled to redeem their Public Shares for a pro rata portion of the amount then in the Trust Account (initially anticipated to be $10.00 per Public Share). There will be no redemption rights upon the completion of a Business Combination with respect to the Company’s warrants.

The Company will have only 24 months from February 19, 2021, the closing of the IPO, to complete an initial Business Combination (the “Combination Period”). However, if the Company doesn’t complete a Business Combination within the Combination Period, the Company will redeem 100% of the outstanding Public Shares for a pro rata portion of the funds held in the Trust Account, equal to the aggregate amount then on deposit in the Trust Account including interest earned on the funds held in the Trust Account and not previously released to the Company to pay its franchise and income taxes, divided by the number of then outstanding Public Shares, subject to applicable law and as further described in registration statement, and then seek to dissolve and liquidate.

The Company’s Sponsor, officers and directors have entered into a letter agreement with the Company, pursuant to which they have agreed to waive (i) their redemption rights with respect to any Founder Shares and any Public Shares held by them in connection with the completion of a Business Combination and (ii) their redemption rights with respect to any Founder Shares and Public Shares held by them in connection with a stockholder vote to approve an amendment to the Company’s Certificate of Incorporation (a) to modify the substance or timing of the Company’s obligation to allow redemptions in connection with a Business Combination or to redeem 100% of the Public Shares if the Company has not consummated a Business Combination within 24 months from the closing of the IPO or (b) with respect to any other provision relating to stockholders’ rights or pre-initial business combination activity.

In order to protect the amounts held in the Trust Account, the Sponsor has agreed to be liable to the Company if and to the extent any claims by a third party (other than our independent public registered accounting firm) for services rendered or products sold to the Company, or a prospective target business with which the Company has discussed entering into a transaction agreement, reduce the amount of funds in the Trust Account to below (i) $10.00 per Public Share or (ii) such lesser amount per Public Share held in the Trust Account as of the date of the liquidation of the Trust Account due to reductions in the value of the trust assets, in each case net of the amount of interest which may be withdrawn to pay taxes, except as to any claims by a third party who executed a waiver of any and all rights to seek access to the Trust Account and except as to any claims under the Company’s indemnity of the underwriter of the IPO against certain liabilities, including liabilities under the Securities Act of 1933, as amended (the “Securities Act”). Moreover, in the event that an executed waiver is deemed to be unenforceable against a third party, the Sponsor will not be responsible to the extent of any liability for such third-party claims. The Company will seek to reduce the possibility that the Sponsor will have to indemnify the Trust Account due to claims of creditors by endeavoring to have all vendors, service providers (except for the Company’s independent registered accounting firm), prospective target businesses and other entities with which the Company does business, execute agreements with the Company waiving any right, title, interest or claim of any kind in or to monies held in the Trust Account. However, the Company has not asked its Sponsor to reserve for such indemnification obligations, nor has the Company independently verified whether its Sponsor has sufficient funds to satisfy its indemnity obligations and the Company believes that the Company’s Sponsor’s only assets are securities of the Company. Therefore, the Company cannot assure that its Sponsor would be able to satisfy those obligations.

Liquidity and Capital Resources

As of September 30, 2021, the Company had approximately $0.7 million in its operating bank account, and working capital of approximately $0.4 million.

The Company’s liquidity needs up to February 19, 2021 had been satisfied through a capital contribution from the Sponsor of $25,000 (see Note 6) for the Founder Shares and the loan under an unsecured promissory note from the Sponsor of $176,000 (see Note 6). The promissory note from the Sponsor was paid in full as of February 22, 2021. In addition, in order to finance transaction costs in connection with a Business Combination, the Company’s Sponsor or an affiliate of the Sponsor or certain of the Company’s officers and directors may, but are not obligated to, provide the Company Working Capital Loans (see Note 6). As of September 30, 2021, there were no amounts outstanding under any Working Capital Loans.

Based on the foregoing, management believes that the Company will have sufficient working capital and borrowing capacity to meet its needs through the earlier of the consummation of a Business Combination or one year from this filing. Over this time period, the Company will be using these funds for paying existing accounts payable, identifying and evaluating prospective initial Business Combination candidates, performing due diligence on prospective target businesses, paying for travel expenditures, selecting the target business to merge with or acquire, and structuring, negotiating and consummating the Business Combination.

Risks and Uncertainties

Management is continuing to evaluate the impact of the COVID-19 pandemic and has concluded that while it is reasonably possible that it could have a negative effect on the Company’s financial position, results of its operations and/or search for a target company, the specific impact is not readily determinable as of the date of these financial statements. The financial statements do not include any adjustments that might result from the outcome of this uncertainty.

XML

Restatement of Previously Issued Financial Statements

9 Months Ended

Sep. 30, 2021

Restatement of Previously Issued Financial Statements

Restatement of Previously Issued Financial Statements

Note 2 — Restatement of Previously Issued Financial Statements

In the Company’s previously issued financial statements, a portion of the public shares were classified as permanent equity to maintain stockholders’ equity greater than $5,000,000 on the basis that the Company will consummate its initial business combination only if the Company has net tangible assets of at least $5,000,001. Thus, the Company can only complete a merger and continue to exist as a public company if there is sufficient Public Shares that do not redeem at the merger and so it was deemed appropriate to classify the portion of its public shares required to keep its stockholders’ equity above the $5,000,000 threshold as “shares not subject to redemption.”

Management re-evaluated the Company’s application of ASC 480-10-99 to its accounting classification of public shares. Upon re-evaluation, management determined that the public shares include certain provisions that require classification of the public shares as temporary equity regardless of the minimum net tangible assets required by the Company to complete its initial business combination.

In connection with the change in presentation for the Class A common stock subject to possible redemption, the Company also revised its earnings per share calculation to allocate income and losses pro rata to Class A and Class B common stock. This presentation contemplates a Business Combination as the most likely outcome, in which case, both classes of stock share pro rata in the income and losses of the Company.

In accordance with SEC Staff Accounting Bulletin No. 99, “Materiality,” and SEC Staff Accounting Bulletin No. 108, “Considering the Effects of Prior Year Misstatements when Quantifying Misstatements in Current Year Financial Statements;” the Company evaluated the changes and has determined that the related impacts were quantitatively material to previously presented financial statements. Therefore, the Company, in consultation with its Board of Directors, concluded that its previously issued financial statements impacted should be restated to report all public shares as temporary equity. As a result, the Company will restate its previously filed financial statements to classify all of its Class A common stock as temporary equity and to recognize accretion from the initial book value to redemption value at the time of its IPO and in accordance with ASC 480. The Company will file a Current Report on Form 8-K reporting under Item 4.02 that the impacted periods should no longer be relied upon and it restates all affected periods with an appropriate explanation of the amount, reason and impact. Under this approach, the previously issued IPO Balance Sheet and Form 10-Qs will not be amended. The Company is reporting the restatement of its interim financial statements for the quarters ended March 31, 2021 and June 30, 2021 in this Quarterly Report.

Impact of the Restatement

The impact to the financial statements as of June 30, 2021 and March 31, 2021 is presented below:

	As Reported			Adjustment			As Restated
Balance Sheet as of March 31, 2021 (per form 10Q filed on May 28, 2021)
Class A Common stock subject to possible redemption ($)	$	144,776,850		$	27,723,150		$	172,500,000
Class A common stock, $0.0001 par value		277			(277	)		—
Additional Paid in Capital		7,898,093			(7,898,093	)		—
Accumulated Deficit		(2,898,798	)		(19,824,780	)		(22,723,578	)
Total Stockholders’ Equity (Deficit)		5,000,003			(27,723,150	)		(22,723,147	)
Class A common stock subject to redemption		14,477,685			2,772,315			17,250,000
Statement of Operations for the three months ended March 31, 2021 (per form 10Q filed on May 28, 2021)
Weighted average shares outstanding, Class A common stock basic and diluted		17,250,000			(9,583,333	)		7,666,667
Weighted average shares outstanding, Class B common stock basic and diluted		4,006,250			6,250			4,000,000
EPS – Class A common stock	$	—		$	(0.25	)	$	(0.25	)
EPS – Class B common stock	$	(0.72	)	$	0.47		$	(0.25	)
	As Reported			Adjustment			As Restated
Condensed Statement of Cash Flows for the three months ended March 31, 2021
Supplemental disclosure of cash flow information:
Initial value of Class A common stock subject to possible redemption	$	143,583,030		$	143,583,030		$	—
Change in value of Class A common stock subject to possible redemption	$	(806,180	)	$	806,180		$	—
	As Reported			Adjustment			As Restated
Balance Sheet as of June 30, 2021 (per form 10Q filed on August 13, 2021)
Class A common stock subject to possible redemption ($)	$	150,116,470		$	22,383,530		$	172,500,000
Class A common stock, $0.0001 par value		224			(224	)		—
Additional Paid in Capital		2,558,526			(2,558,526	)		—
Retained Earnings (Accumulated Deficit)		2,440,823			(19,824,780	)		(17,383,957	)
Total Stockholders’ Equity (Deficit)		5,000,004			(22,383,530	)		(17,383,526	)
Class A common stock subject to redemption		15,011,647			2,238,353			17,250,000
Statement of Operations for the six months ended June 30, 2021 (per form 10Q filed on August 13, 2021)
Weighted average shares outstanding, Class A common stock basic and diluted		17,250,000			4,765,193			12,484,807
Weighted average shares outstanding, Class B common stock basic		4,160,221			3,108			4,157,113
Weighted average shares outstanding, Class B common stock diluted		4,312,500			—			4,312,500
EPS – Class A common stock	$	—		$	0.15		$	0.15
Basic EPS – Class B common stock	$	0.59		$	(0.44	)	$	0.15
Diluted EPS – Class B common stock	$	0.57		$	(0.42	)	$	0.15
Statement of Operations for the three months ended June 30, 2021 (per form 10Q filed on August 13, 2021)
Weighted average shares outstanding, Class A common stock basic and diluted		17,250,000			—			17,250,000
Weighted average shares outstanding, Class B common stock basic and diluted		4,312,500			—			4,312,500
EPS – Class A common stock	$	—		$	0.25		$	0.25
EPS – Class B common stock	$	1.24		$	(0.99	)	$	0.25
	As Reported			Adjustment			As Restated
Condensed Statement of Cash Flows for the six months ended June 30, 2021
Supplemental disclosure of cash flow information:
Initial value of Class A common stock subject to possible redemption	$	145,583,030		$	145,583,080		$	—
Change in value of Class A common stock subject to possible redemption	$	4,533,441		$	(4,533,441	)	$	—

XML

Significant Accounting Policies

9 Months Ended

Sep. 30, 2021

Significant Accounting Policies [Abstract]

Significant Accounting Policies

Note 3 — Significant Accounting Policies

Basis of Presentation

The accompanying unaudited condensed financial statements are presented in U.S. dollars in conformity with accounting principles generally accepted in the United States of America (“GAAP”) for financial information and pursuant to the rules and regulations of the SEC. Accordingly, they do not include all of the information and footnotes required by GAAP. In the opinion of management, the unaudited condensed financial statements reflect all adjustments, which include only normal recurring adjustments necessary for the fair statement of the balances and results for the periods presented. The interim results for the three months and nine months ended September 30, 2021 are not necessarily indicative of the results to be expected for the year ending December 31, 2021 or for any future interim periods.

The accompanying unaudited condensed financial statements should be read in conjunction with the audited financial statements and notes thereto included in the Form 10-K filed by the Company with the SEC on March 30, 2021.

Emerging Growth Company Status

The Company is an “emerging growth company,” as defined in Section 2(a) of the Securities Act, as modified by the Jumpstart our Business Startups Act of 2012, (the “JOBS Act”), and it may take advantage of certain exemptions from various reporting requirements that are applicable to other public companies that are not emerging growth companies including, but not limited to, not being required to comply with the auditor attestation requirements of Section 404 of the Sarbanes-Oxley Act, reduced disclosure obligations regarding executive compensation in its periodic reports and proxy statements, and exemptions from the requirements of holding a nonbinding advisory vote on executive compensation and stockholder approval of any golden parachute payments not previously approved.

Further, Section 102(b)(1) of the JOBS Act exempts emerging growth companies from being required to comply with new or revised financial accounting standards until private companies (that is, those that have not had a Securities Act registration statement declared effective or do not have a class of securities registered under the Exchange Act) are required to comply with the new or revised financial accounting standards. The JOBS Act provides that a company can elect to opt out of the extended transition period and comply with the requirements that apply to non-emerging growth companies but any such election to opt out is irrevocable. The Company has elected not to opt out of such extended transition period which means that when a standard is issued or revised and it has different application dates for public or private companies, the Company, as an emerging growth company, can adopt the new or revised standard at the time private companies adopt the new or revised standard. This may make comparison of the Company’s financial statements with another public company which is neither an emerging growth company nor an emerging growth company which has opted out of using the extended transition period difficult or impossible because of the potential differences in accounting standards used.

Use of Estimates

The preparation of financial statements in conformity with US GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of expenses during the reporting period.

Making estimates requires management to exercise significant judgment.  It is at least reasonably possible that the estimate of the effect of a condition, situation or set of circumstances that existed at the date of the financial statements, which management considered in formulating its estimate, could change in the near term due to one or more future confirming events. Accordingly, actual results could differ from those estimates.

Cash and Cash Equivalents

The Company considers all short-term investments with an original maturity of three months or less when purchased to be cash equivalents. The Company did not have any cash equivalents as of September 30, 2021 and December 31, 2020.

Marketable Securities Held in Trust Account

At September 30, 2021, the assets held in the Trust Account were held in U.S. Treasury Bills with a maturity of 185 days or less and in money market funds which invest in U.S. Treasury securities. During the nine months ended September 30, 2021, the Company did not withdraw any of the interest income from the Trust Account to pay its tax obligations.

The Company classifies its United States Treasury securities as held-to-maturity in accordance with FASB ASC Topic 320 “Investments - Debt and Equity Securities.” Held-to-maturity securities are those securities which the Company has the ability and intent to hold until maturity. Held-to-maturity treasury securities are recorded at amortized cost and adjusted for the amortization or accretion of premiums or discounts.

A decline in the market value of held-to-maturity securities below cost that is deemed to be other than temporary, results in an impairment that reduces the carrying costs to such securities’ fair value. The impairment is charged to earnings and a new cost basis for the security is established. To determine whether an impairment is other than temporary, the Company considers whether it has the ability and intent to hold the investment until a market price recovery and considers whether evidence indicating the cost of the investment is recoverable outweighs evidence to the contrary. Evidence considered in this assessment includes the reasons for the impairment, the severity and the duration of the impairment, changes in value subsequent to year-end, forecasted performance of the investee, and the general market condition in the geographic area or industry in which the investee operates.

Premiums and discounts are amortized or accreted over the life of the related held-to-maturity security as an adjustment to yield using the effective-interest method. Such amortization and accretion are included in the “interest income” line item in the statements of operations. Interest income is recognized when earned.

Concentration of Credit Risk

Financial instruments that potentially subject the Company to concentrations of credit risk consist of cash accounts in a financial institution, which, at times, may exceed the federal depository insurance coverage of $250,000. The Company has not experienced losses on these accounts and management believes the Company is not exposed to significant risks on such accounts.

Warrant Liability

The Company evaluated the Public Warrants and Private Placement Warrants (collectively, “Warrants”, which are discussed in Note 5, Note 6 and Note 10) in accordance with ASC 815-40, “Derivatives and Hedging — Contracts in Entity’s Own Equity”, and concluded that a provision in the Warrant Agreement related to certain tender or exchange offers precludes the Warrants from being accounted for as components of equity. As the Warrants meet the definition of a derivative as contemplated in ASC 815, the Warrants are recorded as derivative liabilities on the Condensed Balance Sheet and measured at fair value at inception (on the date of the IPO) and at each reporting date in accordance with ASC 820, “Fair Value Measurement”, with changes in fair value recognized in the Condensed Statement of Operations in the period of change.

Offering Costs Associated with the Initial Public Offering

The Company complies with the requirements of the ASC 340-10-S99-1. Offering costs consisted of legal, accounting, underwriting fees and other costs incurred through the Initial Public Offering that were directly related to the Initial Public Offering. Offering costs are allocated to the separable financial instruments issued in the Initial Public Offering based on a relative fair value basis, compared to total proceeds received.  Offering costs associated with warrant liabilities are expensed as incurred and are presented as non-operating expenses in the statement of operations. Offering costs associated with the Class A common stock were charged to temporary equity upon the completion of the Initial Public Offering.

Common Stock Subject to Possible Redemption

All of the 17,250,000 Class A Common Stock sold as part of the Units in the Public Offering contain a redemption feature which allows for the redemption of such public shares in connection with the Company’s liquidation, if there is a stockholder vote or tender offer in connection with the Business Combination and in connection with certain amendments to the Company’s second amended and restated certificate of incorporation. In accordance with SEC and its staff’s guidance on redeemable equity instruments, which has been codified in ASC 480-10-S99, redemption provisions not solely within the control of the Company require common stock subject to redemption to be classified outside of permanent equity. Ordinary liquidation events, which involve the redemption and liquidation of all of the entity’s equity instruments, are excluded from the provisions of ASC 480. Accordingly, at September 30, 2021 and December 31, 2020, all shares of Class A common stock subject to possible redemption is presented as temporary equity, outside of the stockholders’ equity section of the Company’s condensed balance sheet.

The Class A common stock subject to possible redemption reflected on the balance sheet as of September 30, 2021 is reconciled in the following table:

Gross Proceeds	$	172,500,000
Less:
Proceeds allocated to public warrants		(10,130,155	)
Class A common stock issuance costs		(9,719,194	)
Plus:
Accretion of carrying value to redemption value		19,849,349
Class A common stock subject to possible redemption	$	172,500,000

Income Taxes

The Company accounts for income taxes under ASC 740 Income Taxes (“ASC 740”). ASC 740 requires the recognition of deferred tax assets and liabilities for both the expected impact of differences between the financial statement and tax basis of assets and liabilities and for the expected future tax benefit to be derived from tax loss and tax credit carry forwards. ASC 740 additionally requires a valuation allowance to be established when it is more likely than not that all or a portion of deferred tax assets will not be realized. The deferred tax assets were deemed to be de minimis as of September 30, 2021 and December 31, 2020.

ASC 740 also clarifies the accounting for uncertainty in income taxes recognized in an enterprise’s financial statements and prescribes a recognition threshold and measurement process for financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return. For those benefits to be recognized, a tax position must be more-likely-than-not to be sustained upon examination by taxing authorities. ASC 740 also provides guidance on derecognition, classification, interest and penalties, accounting in interim period, disclosure and transition.

The Company recognizes accrued interest and penalties related to unrecognized tax benefits as income tax expense. There were no unrecognized tax benefits and no amounts accrued for interest and penalties as of September 30, 2021 and December 31, 2020. The Company is currently not aware of any issues under review that could result in significant payments, accruals or material deviation from its position. The Company has identified the United States as its only “major” tax jurisdiction. The Company is subject to income tax examinations by major taxing authorities since inception. These potential examinations may include questioning the timing and amount of deductions, the nexus of income among various tax jurisdictions and compliance with federal and state tax laws. The Company’s management does not expect that the total amount of unrecognized tax benefits will materially change over the next twelve months. The provision for income taxes was deemed to be de minimis for the three months and nine months ended September 30, 2021.

Net Income (Loss) Per Common Share

The Company has two classes of shares, Class A Common Stock and Class B Common Stock. Earnings and losses are shared pro rata between the two classes of shares. The Company has not considered the effect of the warrants sold in the Initial Public Offering and the Private Placement to purchase an aggregate of 14,575,000 of the Company’s Class A common stock in the calculation of diluted income (loss) per share, since their exercise is contingent upon future events. As a result, diluted net income (loss) per common share is the same as basic net income (loss) per common share for the period.

Reconciliation of Net Income (Loss) per Common Share

The Company’s condensed statement of operations includes a presentation of loss per share for common stock subject to redemption in a manner similar to the two-class method of income (loss) per share. Accordingly, basic and diluted loss per common share of Class A common stock and Class B common stock is calculated as follows:

	Three Months Ended September 30, 2021			Nine Months Ended September 30, 2021
Net Income (loss) per share for Class A common stock:
Allocation of income (loss) to Class A common stock	$	(1,887,399	)	$	63,247
Weighted average shares outstanding of Class A common stock		17,250,000			14,090,659
Basic and diluted net income (loss) per share, Class A common stock	$	(0.11	)	$	0.00
Net Income (loss) per share for Class B common stock:
Allocation of income (loss) to Class B common stock	$	(471,850	)	$	18,894
Basic weighted average shares outstanding of Class B common stock		4,312,500			4,209,478
Basic net income (loss) per share, Class B common stock	$	(0.11	)	$	0.00
Diluted weighted average shares outstanding of Class B common stock		4,312,500			4,312,500
Diluted net income (loss) per share, Class B common stock	$	(0.11	)	$	0.00

Fair Value of Financial Instruments

The Company follows the guidance in ASC 820, “Fair Value Measurement,” for its financial assets and liabilities that are re-measured and reported at fair value at each reporting period, and non-financial assets and liabilities that are re-measured and reported at fair value at least annually.

The fair value of the Company’s financial assets and liabilities reflects management’s estimate of amounts that the Company would have received in connection with the sale of the assets or paid in connection with the transfer of the liabilities in an orderly transaction between market participants at the measurement date. In connection with measuring the fair value of its assets and liabilities, the Company seeks to maximize the use of observable inputs (market data obtained from independent sources) and to minimize the use of unobservable inputs (internal assumptions about how market participants would price assets and liabilities). The following fair value hierarchy is used to classify assets and liabilities based on the observable inputs and unobservable inputs used in order to value the assets and liabilities:

Level 1 —  Valuations based on unadjusted quoted prices in active markets for identical assets or liabilities that the Company has the ability to access. Valuation adjustments and block discounts are not being applied. Since valuations are based on quoted prices that are readily and regularly available in an active market, valuation of these securities does not entail a significant degree of judgment.

Level 2 —  Valuations based on (i) quoted prices in active markets for similar assets and liabilities, (ii) quoted prices in markets that are not active for identical or similar assets, (iii) inputs other than quoted prices for the assets or liabilities, or (iv) inputs that are derived principally from or corroborated by market through correlation or other means.

Level 3 —  Valuations based on inputs that are unobservable and significant to the overall fair value measurement.

See Note 9 for additional information on assets and liabilities measured at fair value.

Recent Accounting Pronouncements

In August 2020, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2020-06, Debt — Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging — Contracts in Entity’s Own Equity (Subtopic 815-40) (“ASU 2020-06”) to simplify accounting for certain financial instruments. ASU 2020-06 eliminates the current models that require separation of beneficial conversion and cash conversion features from convertible instruments and simplifies the derivative scope exception guidance pertaining to equity classification of contracts in an entity’s own equity. The new standard also introduces additional disclosures for convertible debt and freestanding instruments that are indexed to and settled in an entity’s own equity. ASU 2020-06 amends the diluted earnings per share guidance, including the requirement to use the if-converted method for all convertible instruments. ASU 2020-06 is effective January 1, 2022 and should be applied on a full or modified retrospective basis, with early adoption permitted beginning on January 1, 2021. The Company is currently assessing the impact, if any, that ASU 2020-06 would have on its financial position, results of operations or cash flows.

Management does not believe that any other recently issued, but not effective, accounting standards, if currently adopted, would have a material effect on the Company’s financial statements.

XML

Initial Public Offering

9 Months Ended

Sep. 30, 2021

Initial Public Offering [Abstract]

Initial Public Offering

Note 4 — Initial Public Offering

Public Units

On February 19, 2021, the Company sold 17,250,000 Units, at a purchase price of $10.00 per Unit, which included the full exercise by the underwriters of the over-allotment option to purchase an additional 2,250,000 Units. Each Unit consists of one share of Class A common stock, and one-half of one redeemable warrant to purchase one share of Class A common stock (the “Public Warrants”).

Public Warrants

Each whole warrant entitles the registered holder to purchase one share of the Company’s Class A common stock at a price of $11.50 per share, subject to adjustment. Pursuant to the warrant agreement, a warrant holder may exercise its warrants only for a whole number of shares of Class A common stock. No fractional warrants will be issued upon separation of the Units and only whole warrants will trade. The Public Warrants will become exercisable on the later of (a) 30 days after the completion of a Business Combination and (b) 12 months from the closing of the IPO. The Public Warrants will expire five years after the completion of a Business Combination or earlier upon redemption or liquidation.

The Company will not be obligated to deliver any shares of Class A common stock pursuant to the exercise of a warrant and will have no obligation to settle such warrant exercise unless a registration statement under the Securities Act covering the issuance of the shares of Class A common stock issuable upon exercise of the warrants is then effective and a current prospectus relating to those shares of Class A common stock is available, subject to the Company satisfying its obligations with respect to registration, or a valid exemption from registration is available. No warrant will be exercisable for cash or on a cashless basis, and the Company will not be obligated to issue any shares to holders seeking to exercise their warrants, unless the issuance of the shares upon such exercise is registered or qualified under the securities laws of the state of residence of the exercising holder, or an exemption from registration is available.

The Company has agreed that as soon as practicable, but in no event later than 20 business days after the closing of a Business Combination, the Company will use its commercially reasonable efforts to file, and within 60 business days following a Business Combination to have declared effective, a registration statement covering the issuance of the shares of Class A common stock issuable upon exercise of the warrants and to maintain a current prospectus relating to those shares of Class A common stock until the warrants expire or are redeemed. Notwithstanding the above, if the Class A common stock is at the time of any exercise of a warrant not listed on a national securities exchange such that it satisfies the definition of a “covered security” under Section 18(b)(1) of the Securities Act, the Company may, at its option, require holders of Public Warrants who exercise their warrants to do so on a “cashless basis” in accordance with Section 3(a)(9) of the Securities Act and, in the event the Company so elects, the Company will not be required to file or maintain in effect a registration statement, but will use its commercially reasonable efforts to register or qualify the shares under applicable blue sky laws to the extent an exemption is not available.

Redemption of Warrants When the Price per Share of Class A Common Stock Equals or Exceeds $18.00

Once the warrants become exercisable, the Company may redeem the outstanding warrants:

● in whole and not in part;

● at a price of $0.01 per warrant;

● upon not less than 30 days’ prior written notice of redemption (the “30-day redemption period”) to each warrant holder; and

● if, and only if, the last reported sale price of the Class A common stock equals or exceeds $18.00 per share (as adjusted for stock splits, stock dividends, reorganizations, recapitalizations and the like) for any 20 trading days within a 30-trading day period ending on the third trading day prior the date on which the Company sends the notice of redemption to the warrant holders.

If and when the warrants become redeemable by the Company, the Company may exercise the redemption right even if it is unable to register or qualify the underlying securities or sale under all applicable state securities laws.

Redemption of Warrants When the Price per Share of Class A Common Stock Equals or Exceeds $10.00

Once the warrants become exercisable, the Company may redeem the outstanding warrants:

● in whole and not in part;

● at a price of $0.10 per warrant provided that the holder will be able to exercise their warrants on cashless basis prior to redemption and receive that number of shares based on the redemption date and the fair market value of the Class A common stock;

● upon a minimum of 30 days’ prior written notice of redemption;

● if, and only if, the last reported sale price of the Class A common stock equals or exceeds $10.00 per share (as adjusted for stock splits, stock dividends, reorganizations, recapitalizations and the like) for any 20 trading days within a 30-trading day period ending on the third trading day prior to the date on which the Company sends the notice of redemption to the warrant holders; and

● if the last reported sale price of the Class A common stock for any 20 trading days within a 30-trading day period ending on the third trading day prior to the date on which the Company sends the notice of redemption to the warrant holders is less than $18.00 per share (as adjusted for stock splits, stock dividends, reorganizations, recapitalizations and the like), the Private Warrants must also be concurrently called for redemption on the same terms as the outstanding Public Warrants, as described above.

If the Company calls the Public Warrants for redemption, as described above, its management will have the option to require any holder that wishes to exercise the Public Warrants to do so on a “cashless basis,” as described in the warrant agreement.

In addition, if (x) the Company issues additional shares of Class A common stock or equity-linked securities for capital raising purposes in connection with the closing of a Business Combination at an issue price or effective issue price of less than $9.20 per share (with such issue price or effective issue price to be determined in good faith by the Company’s board of directors and, in the case of any such issuance to the sponsor or its affiliates, without taking into account any founder shares held by the sponsor or such affiliates, as applicable, prior to such issuance) (the “Newly Issued Price”), (y) the aggregate gross proceeds from such issuances represent more than 60% of the total equity proceeds, and interest thereon, available for the funding of a Business Combination on the date of the consummation of a Business Combination (net of redemptions), and (z) the volume weighted average trading price of the Company’s common stock during the 20 trading day period starting on the trading day prior to the day on which the Company consummates a Business Combination (such price, the “Market Value”) is below $9.20 per share, the exercise price of the warrants will be adjusted (to the nearest cent) to be equal to 115% of the higher of the Market Value and the Newly Issued Price, and the $18.00 per share redemption trigger price described above will be adjusted (to the nearest cent) to be equal to 180% of the higher of the Market Value and the Newly Issued Price, and the $10.00 per share redemption trigger described above will be adjusted (to the nearest cent) to be equal to the higher of the Market Value and the Newly Issued Price.

XML

Private Placement

9 Months Ended

Sep. 30, 2021

Private Placement [Abstract]

Private Placement

Note 5 — Private Placement

Simultaneously with the closing of the IPO, the Sponsor and certain of the Company’s directors and advisors purchased an aggregate of 5,950,000 Private Warrants at a price of $1.00 per Private Warrant, for an aggregate purchase price of $5,950,000, in a private placement. A portion of the proceeds from the private placement was added to the proceeds from the IPO held in the Trust Account.

The Private Placement Warrants are identical to the Public Warrants underlying the Units sold in the IPO, except that the Private Placement Warrants and the shares of Class A common stock issuable upon the exercise of the Private Placement Warrants will not be transferable, assignable or saleable until 30 days after the completion of a Business Combination, subject to certain limited exceptions. Additionally, the Private Placement Warrants will be exercisable on a cashless basis and be non-redeemable, except as described above, so long as they are held by the Sponsor or its permitted transferees. If the Private Placement Warrants are held by someone other than the Sponsor or its permitted transferees, the Private Placement Warrants will be redeemable by the Company and exercisable by such holders on the same basis as the Public Warrants.

XML

Related Party Transactions

9 Months Ended

Sep. 30, 2021

Related Party Transactions [Abstract]

Related Party Transactions

Note 6 — Related Party Transactions

Founder Shares

On December 11, 2020, the Sponsor paid $25,000 to cover certain offering costs of the Company in consideration for 3,593,750 shares of Class B common stock (the “Founder Shares”). On February 16, 2021 the Company effected a stock dividend of 718,750 shares with respect to the Class B common stock, resulting in the initial stockholders holding an aggregate of 4,312,500 Founder Shares. The accompanying financial statements have been retroactively adjusted to reflect the stock dividend in the share capitalization.  The Founder Shares included an aggregate of up to 562,500 shares subject to forfeiture if the option to purchase additional units was not exercised by the underwriter in full. On February 19, 2021, the underwriter fully exercised its over-allotment option, hence, the 562,500 Founder Shares are no longer subject to forfeiture.

The Sponsor has agreed, subject to limited exceptions, not to transfer, assign or sell any of the Founder Shares until the earlier to occur of: (i) one year after the completion of a Business Combination and (ii) subsequent to a Business Combination, (x) if the last reported sale price of the Class A common stock equals or exceeds $12.00 per share (as adjusted for stock splits, stock capitalizations, reorganizations, recapitalizations and the like) for any 20 trading days within any 30-trading day period commencing at least 150 days after a Business Combination, or (y) the date on which the Company completes a liquidation, merger, capital stock exchange or other similar transaction that results in all of the Public Stockholders having the right to exchange their shares of common stock for cash, securities or other property.

Due to Related Party

The balance of $14,957 represents the amounts accrued for the administrative support services provided by Sponsor.

Promissory Note — Related Party

On December 18, 2020, Company issued an unsecured promissory note to the Sponsor for an aggregate of up to $300,000 to cover expenses related to the IPO. This loan is non-interest bearing and payable on the earlier of April 30, 2021 or the completion of the IPO. As of December 31, 2020, the Company had drawn down $176,000 under the promissory note and, on February 22, 2021, the Company paid the full balance on the note from the proceeds of the IPO.

Related Party Loans

In order to finance transaction costs in connection with a Business Combination, the Sponsor or certain of the Company’s officers and directors may, but are not obligated to, loan the Company funds as may be required (“Working Capital Loans”). Such Working Capital Loans would be evidenced by promissory notes. The notes may be repaid upon completion of a Business Combination, without interest, or, at the lender’s discretion, up to $2,000,000 of the notes may be converted upon completion of a Business Combination into warrants at a price of $1.00 per warrant. Such warrants would be identical to the Private Placement Warrants. In the event that a Business Combination does not close, the Company may use a portion of proceeds held outside the Trust Account to repay the Working Capital Loans but no proceeds held in the Trust Account would be used to repay the Working Capital Loans. As of September 30, 2021, and December 31, 2020, there were no amounts outstanding under the Working Capital Loans.

Administrative Service Fee

Commencing on the date of the IPO, the Company agree to reimburse its Sponsor for office space, administrative and support services provided to members of the Company’s management team in an amount not to exceed $2,000 per month. Upon completion of the Company’s Business Combination or its liquidation, the Company will cease paying these monthly fees.  For the three and nine months ended September 30, 2021, the Company has recorded $6,000 and $14,857 of administrative service fees, respectively.

XML

Commitments and Contingencies

9 Months Ended

Sep. 30, 2021

Commitments and Contingencies [Abstract]

Commitments and Contingencies

Note 7 — Commitments and Contingencies

Registration Rights

The holders of the Founder Shares, Private Placement Warrants and warrants that may be issued upon conversion of Working Capital Loans (and any shares of common stock issuable upon the exercise of the Private Placement Warrants or warrants issued upon conversion of the Working Capital Loans and upon conversion of the Founder Shares) will be entitled to registration rights pursuant to a registration rights agreement dated February 16, 2021, requiring the Company to register such securities for resale (in the case of the Founder Shares, only after conversion to shares of Class A common stock). The holders of these securities will be entitled to make up to three demands, excluding short form registration demands, that the Company register such securities. In addition, the holders have certain “piggy-back” registration rights with respect to registration statements filed subsequent to completion of a Business Combination and rights to require the Company to register for resale such securities pursuant to Rule 415 under the Securities Act. However, the registration rights agreement provides that the Company will not be required to effect or permit any registration or cause any registration statement to become effective until the securities covered thereby are released from their lock-up restrictions. The Company will bear the expenses incurred in connection with the filing of any such registration statements.

Underwriting Agreement

The underwriter had a 45-day option from the date of the IPO to purchase up to an aggregate of 2,250,000 additional Units at the public offering price less the underwriting commissions to cover over-allotments, if any. On February 19, 2021, the underwriter fully exercised its over-allotment option and was paid a cash underwriting discount of $0.20 per Unit, or $3,450,000 in the aggregate.

The underwriters are entitled to deferred underwriting fee of 3.5% of the gross proceeds of the IPO held in the Trust Account, or $6,037,500, upon the completion of the Company’s initial Business Combination subject to the terms of the underwriting agreement.

XML

Stockholders' Equity

9 Months Ended

Sep. 30, 2021

Stockholders' Equity [Abstract]

Stockholders' Equity

Note 8 — Stockholders’ Equity

Preferred Stock — The Company is authorized to issue 1,000,000 shares of preferred stock with a par value of $0.0001 per share with such designations, voting and other rights and preferences as may be determined from time to time by the Company’s board of directors. At September 30, 2021 and December 31, 2020, there were no shares of preferred stock issued or outstanding.

Class A Common Stock — The Company is authorized to issue 200,000,000 shares of Class A common stock with a par value of $0.0001 per share. Holders of Class A common stock are entitled to one vote for each share.  At September 30, 2021 and December 31, 2020, there were 17,250,000 and 0 shares issued and outstanding, including 17,250,000 and 0 shares subject to possible redemption, respectively.

Class B Common Stock — The Company is authorized to issue 20,000,000 shares of Class B common stock with a par value of $0.0001 per share. At September 30, 2021 and December 31, 2020, there were 4,312,500 shares issued and outstanding, respectively.

Only holders of the Class B common stock will have the right to vote on the election of directors prior to the Business Combination. Holders of Class A common stock and holders of Class B common stock will vote together as a single class on all matters submitted to a vote of our stockholders except as otherwise required by law.

The shares of Class B common stock will automatically convert into Class A common stock at the time of a Business Combination, or earlier at the option of the holder, on a one-for-one basis, subject to adjustment. In the case that additional shares of Class A common stock, or equity-linked securities, are issued or deemed issued in excess of the amounts issued in the IPO and related to the closing of a Business Combination, the ratio at which shares of Class B common stock shall convert into shares of Class A common stock will be adjusted (unless the holders of a majority of the then-outstanding shares of Class B common stock agree to waive such adjustment with respect to any such issuance or deemed issuance) so that the number of shares of Class A common stock issuable upon conversion of all shares of Class B common stock will equal, in the aggregate, on an as-converted basis, 20% of the total number of all shares of common stock outstanding upon the completion of the IPO plus all shares of Class A common stock and equity-linked securities issued or deemed issued in connection with a Business Combination (net of the number of shares of Class A common stock redeemed in connection with a Business Combination), excluding any shares or equity-linked securities issued or issuable to any seller in a Business Combination.

XML

Fair Value Measurements

9 Months Ended

Sep. 30, 2021

Fair Value Measurements [Abstract]

Fair Value Measurements

Note 9 — Fair Value Measurements

The following table presents information about the Company’s liabilities that are measured at fair value on a recurring basis at September 30, 2021, and indicates the fair value hierarchy of the valuation inputs the Company utilized to determine such fair value:

	September 30		Quoted Prices In Active Markets		Significant Other Observable Inputs		Significant Other Unobservable Inputs
	2021		(Level 1)		(Level 2)		(Level 3)
Liabilities:
Public Warrants Liability	$	7,762,500	$	7,762,500	$	-	$	-
Private Placement Warrants Liability		6,324,850		-		-		6,324,850
	$	14,087,350	$	7,762,500	$	-	$	6,324,850

The Warrants are accounted for as liabilities in accordance with ASC 815-40 and are presented within warrant liabilities on the Condensed Balance Sheet. The warrant liabilities are measured at fair value at inception and on a recurring basis, with changes in fair value presented within change in fair value of warrant liabilities in the Condensed Statement of Operations.

The Company established the initial fair value of the Public Warrants and Private Warrants on February 19, 2021, the date of the Company’s Initial Public Offering using a Monte Carlo simulation model. The Company established the fair value of the Private Warrants on September 30, 2021 using a Monto Carlo simulation model. The Public and Private Warrants were classified as Level 3 at the initial measurement date and the Private Warrants were classified as Level 3 at September 30, 2021 due to the use of unobservable inputs.  As of September 30, 2021, the Public Warrants were trading separately from the Units, and the quoted market price was used to establish fair value.

The following table provides a reconciliation of changes in fair value of the beginning and ending balances for our liabilities classified as level 3:

	Warrant Liability
Fair value at January 1, 2021	$	-
Initial classification of Public and Private Warrant liability at February 19, 2021		17,605,070
Change in fair value		723,798
Fair Value at March 31, 2021	$	18,328,868
Change in fair value		(6,353,699	)
Transfer of Public Warrant liability to Level 1		(6,555,000	)
Fair Value at June 30, 2021	$	5,420,169
Change in fair value		904,681
Fair Value at September 30, 2021	$	6,324,850

The key inputs into the Monte Carlo simulation as September 30, 2021 were as follows:

	September 30, 2021
Inputs
Risk-free interest rate		1.11	%
Expected remaining term (years)		5.75
Expected volatility		17.7	%
Stock price	$	9.75

The carrying value, excluding gross unrealized holding loss and fair value of held to maturity securities on September 30, 2021 are as follows:

	Carrying Value as of September 30, 2021		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value as of September 30, 2021
U.S. Treasury Securities		172,516,929		-		(2,041	)		172,514,888
	$	172,517,299	$	-	$	(2,041	)	$	172,515,258

XML

Subsequent Events

9 Months Ended

Sep. 30, 2021

Subsequent Events [Abstract]

Subsequent Events

Note 10 — Subsequent Events

The Company evaluated subsequent events and transactions that occurred after the balance sheet date up to the date that the financial statements were issued. Based upon this review, the Company did not identify any subsequent events that would have required adjustment or disclosure in the financial statements, other than the restatement discussed in note 2.

XML

Significant Accounting Policies (Policies)

9 Months Ended

Sep. 30, 2021

Significant Accounting Policies [Abstract]

Basis of Presentation

Basis of Presentation

The accompanying unaudited condensed financial statements are presented in U.S. dollars in conformity with accounting principles generally accepted in the United States of America (“GAAP”) for financial information and pursuant to the rules and regulations of the SEC. Accordingly, they do not include all of the information and footnotes required by GAAP. In the opinion of management, the unaudited condensed financial statements reflect all adjustments, which include only normal recurring adjustments necessary for the fair statement of the balances and results for the periods presented. The interim results for the three months and nine months ended September 30, 2021 are not necessarily indicative of the results to be expected for the year ending December 31, 2021 or for any future interim periods.

The accompanying unaudited condensed financial statements should be read in conjunction with the audited financial statements and notes thereto included in the Form 10-K filed by the Company with the SEC on March 30, 2021.

Use of Estimates

Use of Estimates

The preparation of financial statements in conformity with US GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of expenses during the reporting period.

Making estimates requires management to exercise significant judgment.  It is at least reasonably possible that the estimate of the effect of a condition, situation or set of circumstances that existed at the date of the financial statements, which management considered in formulating its estimate, could change in the near term due to one or more future confirming events. Accordingly, actual results could differ from those estimates.

Cash and Cash Equivalents

Cash and Cash Equivalents

The Company considers all short-term investments with an original maturity of three months or less when purchased to be cash equivalents. The Company did not have any cash equivalents as of September 30, 2021 and December 31, 2020.

Marketable Securities Held in Trust Account

Marketable Securities Held in Trust Account

At September 30, 2021, the assets held in the Trust Account were held in U.S. Treasury Bills with a maturity of 185 days or less and in money market funds which invest in U.S. Treasury securities. During the nine months ended September 30, 2021, the Company did not withdraw any of the interest income from the Trust Account to pay its tax obligations.

The Company classifies its United States Treasury securities as held-to-maturity in accordance with FASB ASC Topic 320 “Investments - Debt and Equity Securities.” Held-to-maturity securities are those securities which the Company has the ability and intent to hold until maturity. Held-to-maturity treasury securities are recorded at amortized cost and adjusted for the amortization or accretion of premiums or discounts.

A decline in the market value of held-to-maturity securities below cost that is deemed to be other than temporary, results in an impairment that reduces the carrying costs to such securities’ fair value. The impairment is charged to earnings and a new cost basis for the security is established. To determine whether an impairment is other than temporary, the Company considers whether it has the ability and intent to hold the investment until a market price recovery and considers whether evidence indicating the cost of the investment is recoverable outweighs evidence to the contrary. Evidence considered in this assessment includes the reasons for the impairment, the severity and the duration of the impairment, changes in value subsequent to year-end, forecasted performance of the investee, and the general market condition in the geographic area or industry in which the investee operates.

Premiums and discounts are amortized or accreted over the life of the related held-to-maturity security as an adjustment to yield using the effective-interest method. Such amortization and accretion are included in the “interest income” line item in the statements of operations. Interest income is recognized when earned.

Concentration of Credit Risk

Concentration of Credit Risk

Financial instruments that potentially subject the Company to concentrations of credit risk consist of cash accounts in a financial institution, which, at times, may exceed the federal depository insurance coverage of $250,000. The Company has not experienced losses on these accounts and management believes the Company is not exposed to significant risks on such accounts.

Warrant Liability

Warrant Liability

The Company evaluated the Public Warrants and Private Placement Warrants (collectively, “Warrants”, which are discussed in Note 5, Note 6 and Note 10) in accordance with ASC 815-40, “Derivatives and Hedging — Contracts in Entity’s Own Equity”, and concluded that a provision in the Warrant Agreement related to certain tender or exchange offers precludes the Warrants from being accounted for as components of equity. As the Warrants meet the definition of a derivative as contemplated in ASC 815, the Warrants are recorded as derivative liabilities on the Condensed Balance Sheet and measured at fair value at inception (on the date of the IPO) and at each reporting date in accordance with ASC 820, “Fair Value Measurement”, with changes in fair value recognized in the Condensed Statement of Operations in the period of change.

Offering Costs Associated with the Initial Public Offering

Offering Costs Associated with the Initial Public Offering

The Company complies with the requirements of the ASC 340-10-S99-1. Offering costs consisted of legal, accounting, underwriting fees and other costs incurred through the Initial Public Offering that were directly related to the Initial Public Offering. Offering costs are allocated to the separable financial instruments issued in the Initial Public Offering based on a relative fair value basis, compared to total proceeds received.  Offering costs associated with warrant liabilities are expensed as incurred and are presented as non-operating expenses in the statement of operations. Offering costs associated with the Class A common stock were charged to temporary equity upon the completion of the Initial Public Offering.

Common Stock Subject to Possible Redemption

Common Stock Subject to Possible Redemption

All of the 17,250,000 Class A Common Stock sold as part of the Units in the Public Offering contain a redemption feature which allows for the redemption of such public shares in connection with the Company’s liquidation, if there is a stockholder vote or tender offer in connection with the Business Combination and in connection with certain amendments to the Company’s second amended and restated certificate of incorporation. In accordance with SEC and its staff’s guidance on redeemable equity instruments, which has been codified in ASC 480-10-S99, redemption provisions not solely within the control of the Company require common stock subject to redemption to be classified outside of permanent equity. Ordinary liquidation events, which involve the redemption and liquidation of all of the entity’s equity instruments, are excluded from the provisions of ASC 480. Accordingly, at September 30, 2021 and December 31, 2020, all shares of Class A common stock subject to possible redemption is presented as temporary equity, outside of the stockholders’ equity section of the Company’s condensed balance sheet.

The Class A common stock subject to possible redemption reflected on the balance sheet as of September 30, 2021 is reconciled in the following table:

Gross Proceeds	$	172,500,000
Less:
Proceeds allocated to public warrants		(10,130,155	)
Class A common stock issuance costs		(9,719,194	)
Plus:
Accretion of carrying value to redemption value		19,849,349
Class A common stock subject to possible redemption	$	172,500,000

Income Taxes

Income Taxes

The Company accounts for income taxes under ASC 740 Income Taxes (“ASC 740”). ASC 740 requires the recognition of deferred tax assets and liabilities for both the expected impact of differences between the financial statement and tax basis of assets and liabilities and for the expected future tax benefit to be derived from tax loss and tax credit carry forwards. ASC 740 additionally requires a valuation allowance to be established when it is more likely than not that all or a portion of deferred tax assets will not be realized. The deferred tax assets were deemed to be de minimis as of September 30, 2021 and December 31, 2020.

ASC 740 also clarifies the accounting for uncertainty in income taxes recognized in an enterprise’s financial statements and prescribes a recognition threshold and measurement process for financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return. For those benefits to be recognized, a tax position must be more-likely-than-not to be sustained upon examination by taxing authorities. ASC 740 also provides guidance on derecognition, classification, interest and penalties, accounting in interim period, disclosure and transition.

The Company recognizes accrued interest and penalties related to unrecognized tax benefits as income tax expense. There were no unrecognized tax benefits and no amounts accrued for interest and penalties as of September 30, 2021 and December 31, 2020. The Company is currently not aware of any issues under review that could result in significant payments, accruals or material deviation from its position. The Company has identified the United States as its only “major” tax jurisdiction. The Company is subject to income tax examinations by major taxing authorities since inception. These potential examinations may include questioning the timing and amount of deductions, the nexus of income among various tax jurisdictions and compliance with federal and state tax laws. The Company’s management does not expect that the total amount of unrecognized tax benefits will materially change over the next twelve months. The provision for income taxes was deemed to be de minimis for the three months and nine months ended September 30, 2021.

Net Income (Loss) Per Common Share

Net Income (Loss) Per Common Share

The Company has two classes of shares, Class A Common Stock and Class B Common Stock. Earnings and losses are shared pro rata between the two classes of shares. The Company has not considered the effect of the warrants sold in the Initial Public Offering and the Private Placement to purchase an aggregate of 14,575,000 of the Company’s Class A common stock in the calculation of diluted income (loss) per share, since their exercise is contingent upon future events. As a result, diluted net income (loss) per common share is the same as basic net income (loss) per common share for the period.

Reconciliation of Net Income (Loss) per Common Share

The Company’s condensed statement of operations includes a presentation of loss per share for common stock subject to redemption in a manner similar to the two-class method of income (loss) per share. Accordingly, basic and diluted loss per common share of Class A common stock and Class B common stock is calculated as follows:

	Three Months Ended September 30, 2021			Nine Months Ended September 30, 2021
Net Income (loss) per share for Class A common stock:
Allocation of income (loss) to Class A common stock	$	(1,887,399	)	$	63,247
Weighted average shares outstanding of Class A common stock		17,250,000			14,090,659
Basic and diluted net income (loss) per share, Class A common stock	$	(0.11	)	$	0.00
Net Income (loss) per share for Class B common stock:
Allocation of income (loss) to Class B common stock	$	(471,850	)	$	18,894
Basic weighted average shares outstanding of Class B common stock		4,312,500			4,209,478
Basic net income (loss) per share, Class B common stock	$	(0.11	)	$	0.00
Diluted weighted average shares outstanding of Class B common stock		4,312,500			4,312,500
Diluted net income (loss) per share, Class B common stock	$	(0.11	)	$	0.00

Fair Value of Financial Instruments

Fair Value of Financial Instruments

The Company follows the guidance in ASC 820, “Fair Value Measurement,” for its financial assets and liabilities that are re-measured and reported at fair value at each reporting period, and non-financial assets and liabilities that are re-measured and reported at fair value at least annually.

The fair value of the Company’s financial assets and liabilities reflects management’s estimate of amounts that the Company would have received in connection with the sale of the assets or paid in connection with the transfer of the liabilities in an orderly transaction between market participants at the measurement date. In connection with measuring the fair value of its assets and liabilities, the Company seeks to maximize the use of observable inputs (market data obtained from independent sources) and to minimize the use of unobservable inputs (internal assumptions about how market participants would price assets and liabilities). The following fair value hierarchy is used to classify assets and liabilities based on the observable inputs and unobservable inputs used in order to value the assets and liabilities:

Level 1 —  Valuations based on unadjusted quoted prices in active markets for identical assets or liabilities that the Company has the ability to access. Valuation adjustments and block discounts are not being applied. Since valuations are based on quoted prices that are readily and regularly available in an active market, valuation of these securities does not entail a significant degree of judgment.

Level 2 —  Valuations based on (i) quoted prices in active markets for similar assets and liabilities, (ii) quoted prices in markets that are not active for identical or similar assets, (iii) inputs other than quoted prices for the assets or liabilities, or (iv) inputs that are derived principally from or corroborated by market through correlation or other means.

Level 3 —  Valuations based on inputs that are unobservable and significant to the overall fair value measurement.

See Note 9 for additional information on assets and liabilities measured at fair value.

Recent Accounting Pronouncements

Recent Accounting Pronouncements

In August 2020, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2020-06, Debt — Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging — Contracts in Entity’s Own Equity (Subtopic 815-40) (“ASU 2020-06”) to simplify accounting for certain financial instruments. ASU 2020-06 eliminates the current models that require separation of beneficial conversion and cash conversion features from convertible instruments and simplifies the derivative scope exception guidance pertaining to equity classification of contracts in an entity’s own equity. The new standard also introduces additional disclosures for convertible debt and freestanding instruments that are indexed to and settled in an entity’s own equity. ASU 2020-06 amends the diluted earnings per share guidance, including the requirement to use the if-converted method for all convertible instruments. ASU 2020-06 is effective January 1, 2022 and should be applied on a full or modified retrospective basis, with early adoption permitted beginning on January 1, 2021. The Company is currently assessing the impact, if any, that ASU 2020-06 would have on its financial position, results of operations or cash flows.

Management does not believe that any other recently issued, but not effective, accounting standards, if currently adopted, would have a material effect on the Company’s financial statements.

XML

Restatement of Previously Issued Financial Statements (Tables)

9 Months Ended

Sep. 30, 2021

Restatement of Previously Issued Financial Statements

Impact of Restatement

The impact to the financial statements as of June 30, 2021 and March 31, 2021 is presented below:

	As Reported			Adjustment			As Restated
Balance Sheet as of March 31, 2021 (per form 10Q filed on May 28, 2021)
Class A Common stock subject to possible redemption ($)	$	144,776,850		$	27,723,150		$	172,500,000
Class A common stock, $0.0001 par value		277			(277	)		—
Additional Paid in Capital		7,898,093			(7,898,093	)		—
Accumulated Deficit		(2,898,798	)		(19,824,780	)		(22,723,578	)
Total Stockholders’ Equity (Deficit)		5,000,003			(27,723,150	)		(22,723,147	)
Class A common stock subject to redemption		14,477,685			2,772,315			17,250,000
Statement of Operations for the three months ended March 31, 2021 (per form 10Q filed on May 28, 2021)
Weighted average shares outstanding, Class A common stock basic and diluted		17,250,000			(9,583,333	)		7,666,667
Weighted average shares outstanding, Class B common stock basic and diluted		4,006,250			6,250			4,000,000
EPS – Class A common stock	$	—		$	(0.25	)	$	(0.25	)
EPS – Class B common stock	$	(0.72	)	$	0.47		$	(0.25	)
	As Reported			Adjustment			As Restated
Condensed Statement of Cash Flows for the three months ended March 31, 2021
Supplemental disclosure of cash flow information:
Initial value of Class A common stock subject to possible redemption	$	143,583,030		$	143,583,030		$	—
Change in value of Class A common stock subject to possible redemption	$	(806,180	)	$	806,180		$	—
	As Reported			Adjustment			As Restated
Balance Sheet as of June 30, 2021 (per form 10Q filed on August 13, 2021)
Class A common stock subject to possible redemption ($)	$	150,116,470		$	22,383,530		$	172,500,000
Class A common stock, $0.0001 par value		224			(224	)		—
Additional Paid in Capital		2,558,526			(2,558,526	)		—
Retained Earnings (Accumulated Deficit)		2,440,823			(19,824,780	)		(17,383,957	)
Total Stockholders’ Equity (Deficit)		5,000,004			(22,383,530	)		(17,383,526	)
Class A common stock subject to redemption		15,011,647			2,238,353			17,250,000
Statement of Operations for the six months ended June 30, 2021 (per form 10Q filed on August 13, 2021)
Weighted average shares outstanding, Class A common stock basic and diluted		17,250,000			4,765,193			12,484,807
Weighted average shares outstanding, Class B common stock basic		4,160,221			3,108			4,157,113
Weighted average shares outstanding, Class B common stock diluted		4,312,500			—			4,312,500
EPS – Class A common stock	$	—		$	0.15		$	0.15
Basic EPS – Class B common stock	$	0.59		$	(0.44	)	$	0.15
Diluted EPS – Class B common stock	$	0.57		$	(0.42	)	$	0.15
Statement of Operations for the three months ended June 30, 2021 (per form 10Q filed on August 13, 2021)
Weighted average shares outstanding, Class A common stock basic and diluted		17,250,000			—			17,250,000
Weighted average shares outstanding, Class B common stock basic and diluted		4,312,500			—			4,312,500
EPS – Class A common stock	$	—		$	0.25		$	0.25
EPS – Class B common stock	$	1.24		$	(0.99	)	$	0.25
	As Reported			Adjustment			As Restated
Condensed Statement of Cash Flows for the six months ended June 30, 2021
Supplemental disclosure of cash flow information:
Initial value of Class A common stock subject to possible redemption	$	145,583,030		$	145,583,080		$	—
Change in value of Class A common stock subject to possible redemption	$	4,533,441		$	(4,533,441	)	$	—

XML

Significant Accounting Policies (Tables)

9 Months Ended

Sep. 30, 2021

Significant Accounting Policies [Abstract]

Class A Common Stock Subject to Possible Redemption

The Class A common stock subject to possible redemption reflected on the balance sheet as of September 30, 2021 is reconciled in the following table:

Gross Proceeds	$	172,500,000
Less:
Proceeds allocated to public warrants		(10,130,155	)
Class A common stock issuance costs		(9,719,194	)
Plus:
Accretion of carrying value to redemption value		19,849,349
Class A common stock subject to possible redemption	$	172,500,000

Basic and Diluted Income (Loss) per Common Share

The Company’s condensed statement of operations includes a presentation of loss per share for common stock subject to redemption in a manner similar to the two-class method of income (loss) per share. Accordingly, basic and diluted loss per common share of Class A common stock and Class B common stock is calculated as follows:

	Three Months Ended September 30, 2021			Nine Months Ended September 30, 2021
Net Income (loss) per share for Class A common stock:
Allocation of income (loss) to Class A common stock	$	(1,887,399	)	$	63,247
Weighted average shares outstanding of Class A common stock		17,250,000			14,090,659
Basic and diluted net income (loss) per share, Class A common stock	$	(0.11	)	$	0.00
Net Income (loss) per share for Class B common stock:
Allocation of income (loss) to Class B common stock	$	(471,850	)	$	18,894
Basic weighted average shares outstanding of Class B common stock		4,312,500			4,209,478
Basic net income (loss) per share, Class B common stock	$	(0.11	)	$	0.00
Diluted weighted average shares outstanding of Class B common stock		4,312,500			4,312,500
Diluted net income (loss) per share, Class B common stock	$	(0.11	)	$	0.00

XML

Fair Value Measurements (Tables)

9 Months Ended

Sep. 30, 2021

Fair Value Measurements [Abstract]

Liabilities Measured at Fair Value on Recurring Basis

The following table presents information about the Company’s liabilities that are measured at fair value on a recurring basis at September 30, 2021, and indicates the fair value hierarchy of the valuation inputs the Company utilized to determine such fair value:

	September 30		Quoted Prices In Active Markets		Significant Other Observable Inputs		Significant Other Unobservable Inputs
	2021		(Level 1)		(Level 2)		(Level 3)
Liabilities:
Public Warrants Liability	$	7,762,500	$	7,762,500	$	-	$	-
Private Placement Warrants Liability		6,324,850		-		-		6,324,850
	$	14,087,350	$	7,762,500	$	-	$	6,324,850

Reconciliation of Changes in Fair Value of Assets and Liabilities Classified as Level 3

The following table provides a reconciliation of changes in fair value of the beginning and ending balances for our liabilities classified as level 3:

	Warrant Liability
Fair value at January 1, 2021	$	-
Initial classification of Public and Private Warrant liability at February 19, 2021		17,605,070
Change in fair value		723,798
Fair Value at March 31, 2021	$	18,328,868
Change in fair value		(6,353,699	)
Transfer of Public Warrant liability to Level 1		(6,555,000	)
Fair Value at June 30, 2021	$	5,420,169
Change in fair value		904,681
Fair Value at September 30, 2021	$	6,324,850

Key Inputs into Monte Carlo Simulation

The key inputs into the Monte Carlo simulation as September 30, 2021 were as follows:

	September 30, 2021
Inputs
Risk-free interest rate		1.11	%
Expected remaining term (years)		5.75
Expected volatility		17.7	%
Stock price	$	9.75

Held to Maturity Securities

The carrying value, excluding gross unrealized holding loss and fair value of held to maturity securities on September 30, 2021 are as follows:

	Carrying Value as of September 30, 2021		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value as of September 30, 2021
U.S. Treasury Securities		172,516,929		-		(2,041	)		172,514,888
	$	172,517,299	$	-	$	(2,041	)	$	172,515,258

XML

Organization and Business Operations (Details) - USD ($)		9 Months Ended
	Feb. 19, 2021	Sep. 30, 2021	Dec. 31, 2020
Organization and Business Operations [Abstract]
Gross proceeds from initial public offering		$ 169,050,000
Warrants issued (in shares)		14,575,000
Transaction costs	$ 10,325,569	$ 0	$ 408,725
Underwriting discount	3,450,000
Deferred underwriting discount	6,037,500
Other offering costs	838,069
Net proceeds deposited into trust account	$ 172,500,000	$ 172,500,000
Net proceeds from Initial Public Offering and Private Placement (in dollars per share)	$ 10.00
Redemption price (in dollars per share)	10.00
Percentage of Public Shares that would not be redeemed if Business Combination is not completed within Initial Combination Period		100.00%
Period to complete Business Combination from closing of Initial Public Offering		24 months
Cash deposited in Trust Account per Unit (in dollars per share)		$ 10.00
Private Placement Warrants [Member]
Organization and Business Operations [Abstract]
Share price (in dollars per share)	$ 1.00
Warrants issued (in shares)	5,950,000
Gross proceeds from issuance of warrants	$ 5,950,000
Class A Common Stock [Member]
Organization and Business Operations [Abstract]
Number of securities called by each warrant (in shares)		1
Warrants exercise price (in dollars per share)		$ 11.50
Initial Public Offering [Member]
Organization and Business Operations [Abstract]
Units issued (in shares)	17,250,000
Share price (in dollars per share)	$ 10.00
Gross proceeds from initial public offering	$ 172,500,000	$ 172,500,000
Underwriting discount	$ 3,450,000
Initial Public Offering [Member] | Private Placement Warrants [Member]
Organization and Business Operations [Abstract]
Number of securities called by each unit (in shares)	0.5
Warrants exercise price (in dollars per share)	$ 11.50
Initial Public Offering [Member] | Class A Common Stock [Member]
Organization and Business Operations [Abstract]
Number of securities called by each unit (in shares)	1
Number of securities called by each warrant (in shares)	1
Over-Allotment Option [Member]
Organization and Business Operations [Abstract]
Units issued (in shares)	2,250,000
Share price (in dollars per share)	$ 10.00

XML

Organization and Business Operations, Liquidity and Capital Resources (Details) - USD ($)	Feb. 19, 2021	Sep. 30, 2021	Dec. 31, 2020
Liquidity and Capital Resources [Abstract]
Cash		$ 674,319	$ 153,938
Working capital		400,000
Founder Shares [Member] | Promissory Note [Member]
Liquidity and Capital Resources [Abstract]
Proceeds from promissory note	$ 176,000
Sponsor [Member] | Founder Shares [Member]
Liquidity and Capital Resources [Abstract]
Capital contribution from the Sponsor	$ 25,000
Sponsor or an Affiliate of the Sponsor, or Certain of the Company's Officers and Directors [Member] | Working Capital Loans [Member]
Liquidity and Capital Resources [Abstract]
Promissory note, outstanding		$ 0

XML

Restatement of Previously Issued Financial Statements (Details)	Sep. 30, 2021 USD ($)
Restatement of Previously Issued Financial Statements
Stockholders' equity threshold value	$ 5,000,000
Net tangible asset threshold for redeeming public shares	$ 5,000,001

XML

Restatement of Previously Issued Financial Statements, Balance Sheet (Details) - USD ($)	Sep. 30, 2021	Jun. 30, 2021	Mar. 31, 2021	Dec. 31, 2020
Balance Sheet [Abstract]
Class A Common stock subject to possible redemption	$ 172,500,000			$ 0
Additional Paid in Capital	0	$ 0	$ 0	24,569
Accumulated Deficit	(19,743,206)	(17,383,957)	(22,723,578)	(567)
Total stockholders' equity (deficit)	$ (19,742,775)	$ (17,383,526)	$ (22,723,147)	24,433
Class A common stock subject to redemption (in shares)	17,250,000	17,250,000	17,250,000
Class A Common Stock [Member]
Balance Sheet [Abstract]
Class A Common stock subject to possible redemption		$ 172,500,000	$ 172,500,000
Class A common stock	$ 0	$ 0	$ 0	$ 0
Class A common stock subject to redemption (in shares)	17,250,000			0
Stockholders' Equity (Deficit):
Common stock, par value (in dollars per share)	$ 0.0001	$ 0.0001	$ 0.0001	$ 0.0001
As Reported [Member]
Balance Sheet [Abstract]
Additional Paid in Capital		$ 2,558,526	$ 7,898,093
Accumulated Deficit		2,440,823	(2,898,798)
Total stockholders' equity (deficit)		$ 5,000,004	$ 5,000,003
Class A common stock subject to redemption (in shares)		15,011,647	14,477,685
As Reported [Member] | Class A Common Stock [Member]
Balance Sheet [Abstract]
Class A Common stock subject to possible redemption		$ 150,116,470	$ 144,776,850
Class A common stock		224	277
Adjustment [Member]
Balance Sheet [Abstract]
Additional Paid in Capital		(2,558,526)	(7,898,093)
Accumulated Deficit		(19,824,780)	(19,824,780)
Total stockholders' equity (deficit)		$ (22,383,530)	$ (27,723,150)
Class A common stock subject to redemption (in shares)		2,238,353	2,772,315
Adjustment [Member] | Class A Common Stock [Member]
Balance Sheet [Abstract]
Class A Common stock subject to possible redemption		$ 22,383,530	$ 27,723,150
Class A common stock		$ (224)	$ (277)

XML

Restatement of Previously Issued Financial Statements, Statement of Operations (Details) - $ / shares	3 Months Ended			6 Months Ended	9 Months Ended
	Sep. 30, 2021	Jun. 30, 2021	Mar. 31, 2021	Jun. 30, 2021	Sep. 30, 2021
Class A Common Stock [Member]
Statement of Operations[Abstract]
Basic weighted average shares outstanding (in shares)	17,250,000	17,250,000	7,666,667	12,484,807	14,090,659
Diluted weighted average shares outstanding (in shares)	17,250,000	17,250,000	7,666,667	12,484,807	14,090,659
Basic, EPS (in dollars per share)	$ (0.11)	$ 0.25	$ (0.25)	$ 0.15	$ 0.00
Diluted, EPS (in dollars per share)	$ (0.11)	$ 0.25	$ (0.25)	$ 0.15	$ 0.00
Class B Common Stock [Member]
Statement of Operations[Abstract]
Basic weighted average shares outstanding (in shares)	4,312,500	4,312,500	4,000,000	4,157,113	4,209,478
Diluted weighted average shares outstanding (in shares)	4,312,500	4,312,500	4,000,000	4,312,500	4,312,500
Basic, EPS (in dollars per share)	$ (0.11)	$ 0.25	$ (0.25)	$ 0.15	$ 0.00
Diluted, EPS (in dollars per share)	$ (0.11)	$ 0.25	$ (0.25)	$ 0.15	$ 0.00
As Reported [Member] | Class A Common Stock [Member]
Statement of Operations[Abstract]
Basic weighted average shares outstanding (in shares)		17,250,000	17,250,000	17,250,000
Diluted weighted average shares outstanding (in shares)		17,250,000	17,250,000	17,250,000
Basic, EPS (in dollars per share)		$ 0	$ 0	$ 0
Diluted, EPS (in dollars per share)		$ 0	$ 0	$ 0
As Reported [Member] | Class B Common Stock [Member]
Statement of Operations[Abstract]
Basic weighted average shares outstanding (in shares)		4,312,500	4,006,250	4,160,221
Diluted weighted average shares outstanding (in shares)		4,312,500	4,006,250	4,312,500
Basic, EPS (in dollars per share)		$ 1.24	$ (0.72)	$ 0.59
Diluted, EPS (in dollars per share)		$ 1.24	$ (0.72)	$ 0.57
Adjustment [Member] | Class A Common Stock [Member]
Statement of Operations[Abstract]
Basic weighted average shares outstanding (in shares)		0	(9,583,333)	4,765,193
Diluted weighted average shares outstanding (in shares)		0	(9,583,333)	4,765,193
Basic, EPS (in dollars per share)		$ 0.25	$ (0.25)	$ 0.15
Diluted, EPS (in dollars per share)		$ 0.25	$ (0.25)	$ 0.15
Adjustment [Member] | Class B Common Stock [Member]
Statement of Operations[Abstract]
Basic weighted average shares outstanding (in shares)		0	6,250	3,108
Diluted weighted average shares outstanding (in shares)		0	6,250	0
Basic, EPS (in dollars per share)		$ (0.99)	$ 0.47	$ (0.44)
Diluted, EPS (in dollars per share)		$ (0.99)	$ 0.47	$ (0.42)

XML

Restatement of Previously Issued Financial Statements, Condensed Statement of Cash Flows (Details) - Class A Common Stock [Member] - USD ($)	3 Months Ended	6 Months Ended
	Mar. 31, 2021	Jun. 30, 2021
Supplemental Cash Flow Information [Abstract]
Initial value of Class A common stock subject to possible redemption	$ 0	$ 0
Change in value of Class A common stock subject to possible redemption	0	0
As Reported [Member]
Supplemental Cash Flow Information [Abstract]
Initial value of Class A common stock subject to possible redemption	143,583,030	145,583,030
Change in value of Class A common stock subject to possible redemption	(806,180)	4,533,441
Adjustment [Member]
Supplemental Cash Flow Information [Abstract]
Initial value of Class A common stock subject to possible redemption	143,583,030	145,583,080
Change in value of Class A common stock subject to possible redemption	$ 806,180	$ (4,533,441)

XML

Significant Accounting Policies, Cash and Cash Equivalents (Details) - USD ($) $ in Thousands	Sep. 30, 2021	Dec. 31, 2020
Cash and Cash Equivalents [Abstract]
Cash equivalents	$ 0	$ 0

XML

Significant Accounting Policies, Common Stock Subject to Possible Redemption (Details) - USD ($)		9 Months Ended
	Feb. 19, 2021	Sep. 30, 2021	Jun. 30, 2021	Mar. 31, 2021	Dec. 31, 2020
Common Stock Subject to Possible Redemption [Abstract]
Class A common stock, shares subject to possible redemption (in shares)		17,250,000	17,250,000	17,250,000
Class A Ordinary Shares Subject To Possible Redemption [Abstract]
Gross Proceeds		$ 169,050,000
Payment of offering costs		(791,574)
Temporary Equity, Carrying Amount, Attributable to Parent		$ 172,500,000			$ 0
Class A Common Stock [Member]
Common Stock Subject to Possible Redemption [Abstract]
Class A common stock, shares subject to possible redemption (in shares)		17,250,000			0
Class A Ordinary Shares Subject To Possible Redemption [Abstract]
Temporary Equity, Carrying Amount, Attributable to Parent			$ 172,500,000	$ 172,500,000
Initial Public Offering [Member]
Class A Ordinary Shares Subject To Possible Redemption [Abstract]
Gross Proceeds	$ 172,500,000	$ 172,500,000
Initial Public Offering [Member] | Class A Common Stock [Member]
Class A Ordinary Shares Subject To Possible Redemption [Abstract]
Payment of offering costs		(9,719,194)
Temporary Equity, Accretion to Redemption Value		19,849,349
Temporary Equity, Carrying Amount, Attributable to Parent		172,500,000
Initial Public Offering [Member] | Public Warrant [Member]
Class A Ordinary Shares Subject To Possible Redemption [Abstract]
Less: Proceeds allocated to public warrants		$ (10,130,155)

XML

Significant Accounting Policies, Income Taxes (Details) - USD ($) $ in Thousands	Sep. 30, 2021	Dec. 31, 2020
Income Taxes [Abstract]
Accrued interest and penalties	$ 0	$ 0
Unrecognized tax benefits	$ 0	$ 0

XML

Significant Accounting Policies, Net Income (Loss) Per Common Share (Details)	3 Months Ended			6 Months Ended	9 Months Ended
	Sep. 30, 2021 USD ($) $ / shares shares	Jun. 30, 2021 $ / shares shares	Mar. 31, 2021 $ / shares shares	Jun. 30, 2021 $ / shares shares	Sep. 30, 2021 USD ($) Class $ / shares shares
Net Income (Loss) per Common Share [Abstract]
Number of share classes reported | Class					2
Warrants issued (in shares)					14,575,000
Class A Common Stock [Member]
Net Income (Loss) per Common Share [Abstract]
Allocation of income (loss) to common stock | $	$ (1,887,399)				$ 63,247
Basic weighted average shares outstanding (in shares)	17,250,000	17,250,000	7,666,667	12,484,807	14,090,659
Basic net income (loss) per share (in dollars per share) | $ / shares	$ (0.11)	$ 0.25	$ (0.25)	$ 0.15	$ 0.00
Diluted weighted average shares outstanding (in shares)	17,250,000	17,250,000	7,666,667	12,484,807	14,090,659
Diluted net income (loss) per share (in dollars per share) | $ / shares	$ (0.11)	$ 0.25	$ (0.25)	$ 0.15	$ 0.00
Class B Common Stock [Member]
Net Income (Loss) per Common Share [Abstract]
Allocation of income (loss) to common stock | $	$ (471,850)				$ 18,894
Basic weighted average shares outstanding (in shares)	4,312,500	4,312,500	4,000,000	4,157,113	4,209,478
Basic net income (loss) per share (in dollars per share) | $ / shares	$ (0.11)	$ 0.25	$ (0.25)	$ 0.15	$ 0.00
Diluted weighted average shares outstanding (in shares)	4,312,500	4,312,500	4,000,000	4,312,500	4,312,500
Diluted net income (loss) per share (in dollars per share) | $ / shares	$ (0.11)	$ 0.25	$ (0.25)	$ 0.15	$ 0.00

XML

Initial Public Offering, Public Units (Details) - $ / shares	Feb. 19, 2021	Sep. 30, 2021
Class A Common Stock [Member]
Initial Public Offering [Abstract]
Number of securities called by each warrant (in shares)		1
Initial Public Offering [Member]
Initial Public Offering [Abstract]
Units issued (in shares)	17,250,000
Unit price (in dollars per share)	$ 10.00
Initial Public Offering [Member] | Public Warrants [Member]
Initial Public Offering [Abstract]
Number of securities called by each unit (in shares)	0.5
Initial Public Offering [Member] | Class A Common Stock [Member]
Initial Public Offering [Abstract]
Number of securities called by each unit (in shares)	1
Number of securities called by each warrant (in shares)	1
Over-Allotment Option [Member]
Initial Public Offering [Abstract]
Units issued (in shares)	2,250,000
Unit price (in dollars per share)	$ 10.00

XML

Initial Public Offering, Public Warrants (Details)	9 Months Ended
	Sep. 30, 2021 $ / shares shares
Warrants [Abstract]
Period for warrants to become exercisable after completion of business combination	30 days
Period for warrants to become exercisable from closing of IPO	12 months
Warrants expiration period	5 years
Number of days to file registration statement	20 days
Period for registration statement to become effective	60 days
Class A Common Stock [Member]
Warrants [Abstract]
Number of securities called by each warrant (in shares) | shares	1
Warrants exercise price (in dollars per share)	$ 11.50
Class A Common Stock [Member] | Additional Issue of Common Stock or Equity [Member]
Warrants [Abstract]
Share price (in dollars per share)	$ 9.20
Number of trading days	20 days
Percentage of higher of Market Value or Newly Issued Price to which exercise price of public warrants is adjusted	115.00%
Percentage of higher of Market Value or Newly Issued Price to which redemption triggered price is adjusted	180.00%
Class A Common Stock [Member] | Additional Issue of Common Stock or Equity [Member] | Maximum [Member]
Warrants [Abstract]
Percentage of aggregate gross proceeds of issuance available for funding of business combination	60.00%
Redemption of Warrants When Price Exceeds $18.00 [Member] | Class A Common Stock [Member]
Warrants [Abstract]
Warrant redemption price (in dollars per share)	$ 0.01
Notice period to redeem warrants	30 days
Redemption period	30 days
Number of trading days	20 days
Trading day threshold period	30 days
Redemption of Warrants When Price Exceeds $18.00 [Member] | Class A Common Stock [Member] | Minimum [Member]
Warrants [Abstract]
Share price (in dollars per share)	$ 18.00
Redemption of Warrants When Price Exceeds $10.00 [Member] | Class A Common Stock [Member]
Warrants [Abstract]
Warrant redemption price (in dollars per share)	$ 0.10
Notice period to redeem warrants	30 days
Number of trading days	20 days
Trading day threshold period	30 days
Redemption of Warrants When Price Exceeds $10.00 [Member] | Class A Common Stock [Member] | Minimum [Member]
Warrants [Abstract]
Share price (in dollars per share)	$ 10.00

XML

Private Placement (Details) - USD ($)		9 Months Ended
	Feb. 19, 2021	Sep. 30, 2021
Private Placement Warrants [Abstract]
Warrants issued (in shares)		14,575,000
Private Warrants [Member] | Sponsor and Certain of the Company's Directors and Advisors [Member]
Private Placement Warrants [Abstract]
Warrants issued (in shares)	5,950,000
Share price (in dollars per share)	$ 1.00
Gross proceeds from issuance of warrants	$ 5,950,000
Period before warrants will be transferable, assignable or saleable		30 days

XML

Related Party Transactions, Founder Shares (Details) - Founder Shares [Member] - USD ($)				9 Months Ended
	Feb. 19, 2021	Feb. 16, 2021	Dec. 11, 2020	Sep. 30, 2021
Class B Common Stock [Member]
Founder Shares [Abstract]
Shares issued (in shares)		4,312,500
Stock dividend (in shares)		718,750
Common stock no longer subject to forfeiture (in shares)	562,500
Class B Common Stock [Member] | Maximum [Member]
Founder Shares [Abstract]
Common stock, subject to forfeiture (in shares)		562,500
Sponsor [Member]
Founder Shares [Abstract]
Proceeds from issuance of stock	$ 25,000
Sponsor [Member] | Class A Common Stock [Member]
Founder Shares [Abstract]
Period before warrants will be transferable, assignable or saleable				1 year
Number of trading days				20 days
Trading day threshold period				30 days
Sponsor [Member] | Class A Common Stock [Member] | Minimum [Member]
Founder Shares [Abstract]
Share price (in dollars per share)				$ 12.00
Threshold period after initial Business Combination				150 days
Sponsor [Member] | Class B Common Stock [Member]
Founder Shares [Abstract]
Proceeds from issuance of stock			$ 25,000
Shares issued (in shares)			3,593,750

XML

Related Party Transactions, Due to Related Party (Details) - USD ($)	Sep. 30, 2021	Dec. 31, 2020
Due to Related Party [Abstract]
Due to related party	$ 14,957	$ 0
Sponsor [Member] | Administrative Service Fee [Member]
Due to Related Party [Abstract]
Due to related party	$ 14,957

XML

Related Party Transactions, Promissory Note-Related Party (Details) - USD ($)				9 Months Ended
	Feb. 22, 2021	Dec. 31, 2020	Dec. 18, 2020	Sep. 30, 2021
Related Party Transactions [Abstract]
Repayment of promissory note				$ 176,000
Sponsor [Member] | Promissory Note [Member]
Related Party Transactions [Abstract]
Proceeds from promissory note		$ 176,000
Repayment of promissory note	$ 176,000
Sponsor [Member] | Promissory Note [Member] | Maximum [Member]
Related Party Transactions [Abstract]
Related party transaction			$ 300,000

XML

Related Party Transactions, Related Party Loans (Details) - USD ($)	9 Months Ended
	Sep. 30, 2021	Dec. 31, 2020
Related Party Loans [Abstract]
Outstanding balance	$ 0	$ 176,000
Sponsor or Certain of the Company's Officers and Directors [Member] | Working Capital Loans [Member]
Related Party Loans [Abstract]
Outstanding balance	0	$ 0
Sponsor or Certain of the Company's Officers and Directors [Member] | Working Capital Loans [Member] | Maximum [Member]
Related Party Loans [Abstract]
Related party transaction	$ 2,000,000
Warrant price (in dollars per share)	$ 1.00

XML

Related Party Transactions, Administrative Service Fee (Details) - Sponsor [Member] - Administrative Service Fee [Member] - USD ($)	3 Months Ended	9 Months Ended
	Sep. 30, 2021	Sep. 30, 2021
Administrative Service Fee [Abstract]
Related party expense	$ 6,000	$ 14,857
Maximum [Member]
Administrative Service Fee [Abstract]
Related party fee		$ 2,000

XML

Commitments and Contingencies (Details)		9 Months Ended
	Feb. 19, 2021 USD ($) $ / shares shares	Sep. 30, 2021 USD ($) Demand	Dec. 31, 2020 USD ($)
Underwriting Agreement [Abstract]
Underwriting discount	$ 3,450,000
Deferred underwriting discount		3.50%
Deferred underwriting fees		$ 6,037,500	$ 0
Maximum [Member]
Registration Rights [Abstract]
Number of demands eligible security holder can make | Demand		3
Initial Public Offering [Member]
Underwriting Agreement [Abstract]
Units issued (in shares) | shares	17,250,000
Underwriting discount	$ 3,450,000
Underwriter fee (in dollars per share) | $ / shares	$ 0.20
Over-Allotment Option [Member]
Underwriting Agreement [Abstract]
Sale of stock underwriter option term		45 days
Units issued (in shares) | shares	2,250,000

XML

Stockholders' Equity (Details)	9 Months Ended
	Sep. 30, 2021 Vote $ / shares shares	Jun. 30, 2021 $ / shares shares	Mar. 31, 2021 $ / shares shares	Dec. 31, 2020 $ / shares shares
Stockholders' Equity [Abstract]
Preferred stock, shares authorized (in shares)	1,000,000			1,000,000
Preferred stock, par value (in dollars per share) | $ / shares	$ 0.0001			$ 0.0001
Preferred stock, shares issued (in shares)	0			0
Preferred stock, shares outstanding (in shares)	0			0
Common stock subject to possible redemption, shares outstanding (in shares)	17,250,000	17,250,000	17,250,000
Stock conversion basis at time of business combination	1
Stock conversion percentage threshold	20.00%
Class A Common Stock [Member]
Stockholders' Equity [Abstract]
Common stock, shares authorized (in shares)	200,000,000			200,000,000
Common stock, par value (in dollars per share) | $ / shares	$ 0.0001	$ 0.0001	$ 0.0001	$ 0.0001
Votes per share | Vote	1
Common stock, shares issued, including shares subject to possible redemption (in shares)	17,250,000			0
Common stock, shares outstanding, including shares subject to possible redemption (in shares)	17,250,000			0
Common stock subject to possible redemption, shares issued (in shares)	17,250,000			0
Common stock subject to possible redemption, shares outstanding (in shares)	17,250,000			0
Common stock, shares issued (in shares)	0			0
Common stock, shares outstanding (in shares)	0			0
Class B Common Stock [Member]
Stockholders' Equity [Abstract]
Common stock, shares authorized (in shares)	20,000,000			20,000,000
Common stock, par value (in dollars per share) | $ / shares	$ 0.0001			$ 0.0001
Common stock, shares issued (in shares)	4,312,500			4,312,500
Common stock, shares outstanding (in shares)	4,312,500			4,312,500

XML

Fair Value Measurements, Liabilities Measured at Fair Value on Recurring Basis (Details) - Recurring [Member]	Sep. 30, 2021 USD ($)
Liabilities [Abstract]
Warrants liability	$ 14,087,350
Public Warrants [Member]
Liabilities [Abstract]
Warrants liability	7,762,500
Private Placement Warrants [Member]
Liabilities [Abstract]
Warrants liability	6,324,850
Quoted Prices in Active Markets (Level 1) [Member]
Liabilities [Abstract]
Warrants liability	7,762,500
Quoted Prices in Active Markets (Level 1) [Member] | Public Warrants [Member]
Liabilities [Abstract]
Warrants liability	7,762,500
Quoted Prices in Active Markets (Level 1) [Member] | Private Placement Warrants [Member]
Liabilities [Abstract]
Warrants liability	0
Significant Other Observable Inputs (Level 2) [Member]
Liabilities [Abstract]
Warrants liability	0
Significant Other Observable Inputs (Level 2) [Member] | Public Warrants [Member]
Liabilities [Abstract]
Warrants liability	0
Significant Other Observable Inputs (Level 2) [Member] | Private Placement Warrants [Member]
Liabilities [Abstract]
Warrants liability	0
Significant Other Unobservable Inputs (Level 3) [Member]
Liabilities [Abstract]
Warrants liability	6,324,850
Significant Other Unobservable Inputs (Level 3) [Member] | Public Warrants [Member]
Liabilities [Abstract]
Warrants liability	0
Significant Other Unobservable Inputs (Level 3) [Member] | Private Placement Warrants [Member]
Liabilities [Abstract]
Warrants liability	$ 6,324,850

XML

Fair Value Measurements, Reconciliation of Changes in Fair Value of Assets and Liabilities Classified as Level 3 (Details) - Warrant Liability [Member] - USD ($)	3 Months Ended
	Sep. 30, 2021	Jun. 30, 2021	Mar. 31, 2021
Changes in Fair Value of Level 3 Warrant Liabilities [Roll Forward]
Fair value, beginning balance	$ 5,420,169	$ 18,328,868	$ 0
Initial classification of Public and Private Warrant liability at February 19, 2021			17,605,070
Change in fair value	904,681	(6,353,699)	723,798
Transfer of Public Warrant liability to Level 1		(6,555,000)
Fair value, ending balance	$ 6,324,850	$ 5,420,169	$ 18,328,868

XML

Fair Value Measurements, Key Inputs into Monte Carlo Simulation (Details)	Sep. 30, 2021 $ / shares
Fair Value Measurements [Abstract]
Measurement input	5 years
Warrants [Member] | Risk-Free Interest Rate [Member]
Fair Value Measurements [Abstract]
Measurement input	0.0111
Warrants [Member] | Expected Remaining Term [Member]
Fair Value Measurements [Abstract]
Measurement input	5 years 9 months
Warrants [Member] | Expected Volatility [Member]
Fair Value Measurements [Abstract]
Measurement input	0.177
Warrants [Member] | Stock Price [Member]
Fair Value Measurements [Abstract]
Measurement input	9.75

XML

Fair Value Measurements, Held to Maturity Securities (Details)	Sep. 30, 2021 USD ($)
Held to Maturity Securities [Abstract]
Carrying value	$ 172,517,299
Gross unrealized gains	0
Gross unrealized losses	(2,041)
Fair value	172,515,258
U.S. Treasury Securities [Member]
Held to Maturity Securities [Abstract]
Carrying value	172,516,929
Gross unrealized gains	0
Gross unrealized losses	(2,041)
Fair value	$ 172,514,888